Quarterly BAS Due (July–September)
Form 1099-NEC & Contractor Payment Reporting Check
Why this matters.
Late payment remains one of the most persistent problems facing UK small businesses, with billions of pounds tied up in overdue invoices at any given time. The Late Payment of Commercial Debts (Interest) Act 1998, as amended by the Late Payment of Commercial Debts Regulations 2013, gives every business the statutory right to claim interest on overdue B2B invoices at 8% plus the Bank of England base rate, along with fixed compensation of £40 to £100 per invoice depending on the debt size — rights that exist automatically even where a contract is silent on the issue, and that many small suppliers simply never enforce. Separately, the Reporting on Payment Practices and Performance Regulations 2017 require large companies and LLPs (broadly, those exceeding two of: £36 million turnover, £18 million balance sheet total, or 250 employees) to publish their payment practices twice a year on GOV.UK, covering average time to pay, the proportion of invoices paid within 30, 31-60, and over 60 days, and whether they belong to a recognised prompt payment code.
The Department for Business and Trade’s Fair Payment Code, launched to replace the earlier Prompt Payment Code, sets Gold, Silver, and Bronze tiers based on the percentage of invoices a business pays within 30 days, and the Small Business Commissioner has powers to investigate and publicly name businesses with poor payment practices. Government has signalled further reform is coming to strengthen reporting obligations and tackle supply-chain late payment, reflecting sustained pressure from business groups such as the FSB. Whether your business is a large payer with statutory reporting duties, or a small supplier owed money by a slow-paying customer, understanding exactly where you sit in this framework — and what rights or obligations apply — is the first step to getting paid on time or staying compliant.
