We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA
What does it mean for small businesses?
The Commercial Payments (Late Payments) Bill was announced in the King’s Speech on 13 May 2026 and is on its journey through the Houses of Parliament. The Bill proposes several significant changes to existing payments law, including:
- 60-day maximum payment terms
- mandatory interest on late payments
- stronger powers for the Small Business Commissioner to investigate poor payment practices, adjudicate disputes and fine persistently poor behaviour.
For small businesses looking to improve cashflow, this means no more long payment terms and greater support when payment issues arise. For large businesses there are clearer expectations and accountability around payment practices.
Find out more about the Late Payments Bill and what it means for your business
The Office of the Small Business Commissioner (OSBC) delivers a range of free services, tools and guidance to support small businesses get paid on time. These can be accessed from the links below:
- Read the OSBC guide to what the Late Payments Bill means for all businesses.
- Small businesses experiencing late payments can submit a formal complaint to the OSBC.
- Our interactive calculator tool ensures you apply the correct amount of interest to overdue invoices.
- Explore the OSBC’s range of tools, tips and guidance to help prevent and resolve late payment.
- See various case studies and how the OSBC has helped other businesses.
- Consider applying to the Fair Payment Code and check the Awardees Directory for potential customers.