Sixty days, says the law

You did the job. The customer was pleased. The invoice went out. And then, nothing. A month of silence, a reminder that gets a thumbs up and no bank transfer, and eventually an excuse. Every tradesperson collects a few memorable ones.

It would be funnier if it weren't a livelihood. In January 2026 Direct Line found 68% of UK tradespeople chasing at least one overdue invoice, almost a quarter chasing four or more at once, and over half seeing more late payments than a year before (reported by Credit Connect). The government puts the wider cost at £11 billion a year, with 38 small businesses closing every day because of late payment.

So the news that ministers are bringing in "the largest crackdown on late payments in over 25 years", with a legal cap of 60 days on payment terms at the centre of it, sounds like it should matter to you. Here's what's actually in it, when it arrives, and the part nobody's putting in the headlines.

What's changing

The Small Business Protections Bill went into Parliament in May 2026. Once it becomes law, the main measures are:

A 60-day cap on payment terms. Large businesses paying smaller suppliers won't be allowed to set payment terms longer than 60 days. No more "our standard terms are 90 days" from the big contractor's accounts department. This part is expected to take effect no earlier than 2027.

Interest on late payment becomes the default. Overdue commercial invoices will carry interest at 8% above the Bank of England base rate, and businesses won't be able to write it out of the contract. (You're already entitled to statutory interest on business-to-business debts under the 1998 late payment rules; the difference is that it stops being something you have to invoke.)

A deadline for disputes. Customers will get 60 days to raise a problem with an invoice. No more surprise quibbles months after the job, invented at the exact moment the money's due.

A Small Business Commissioner with teeth. The Commissioner gets powers to investigate poor payment practices, settle disputes without going to court, and fine repeat offenders.

For construction: the government is also consulting on banning retentions, the practice of holding back a slice of your money for months or years after the work is done.

Now the honest bit

Every measure above governs businesses paying businesses, and the cap specifically covers large firms paying smaller suppliers.

If you subcontract for main contractors, do commercial maintenance, or supply builders and developers, this is real. Slow-paying big customers are exactly who it's aimed at, and default interest plus a Commissioner who can fine them changes the conversation.

If most of your work is for homeowners, though, the Bill isn't coming to save you. A homeowner who's decided the bathroom money is now holiday money isn't covered by a cap on commercial payment terms. Tradespeople seem to have sensed this already: in Direct Line's survey nearly half now ask customers for proof of funds before starting, and two in five take half the payment upfront. When the trade is protecting itself at the front door, it isn't waiting for Parliament.

What actually gets you paid faster

The law will help at the commercial end, eventually. In the meantime, the things that move the needle are unglamorous and entirely in your hands.

Invoice before you leave the drive. Quick invoices and quick payment travel together: the invoice that goes out while the job is fresh is the one that gets paid while the job is fresh. "Whenever I get round to it" is a polite way of saying "sometimes never".

Bill for the extras. Simply Business found UK tradespeople giving away 1.8 hours a week on requests outside the job, about £2,600 a year, and a third get nothing at all for that extra work (408 tradespeople, June 2026). That's not generosity, it's leakage.

Put your terms in writing, every time. Payment due date, deposit, and for business customers a line noting that late payment carries statutory interest. It's remarkable how a date on a page speeds up a bank transfer.

Chase on a schedule, not on a mood. A polite reminder the day after the due date, another a week later, and an escalation you decided on in advance. The worst system is the one where chasing only happens when you're angry enough, at 9pm, from the van.

Don't write it off. Over four in ten tradespeople have written off debts of more than £500, and a fifth have given up on an invoice over £1,000, Direct Line found. The hassle is the whole problem, which brings us to the bit where we mention what we do.

With Qenn, someone writes the invoice up, sends the reminder, and has the awkward conversation for you, on the WhatsApp you already use. You read it before it goes. You do the job. Qenn does the rest: quotes, invoices, payment chasing.

If the money's already late, start with the chasing ladder.

Figures from Direct Line business insurance (January 2026), Simply Business (June 2026, 408 UK tradespeople), late payment research for the Department for Business and Trade and the Office of the Small Business Commissioner (July 2025) and GOV.UK, May 2026. The Small Business Protections Bill is still going through Parliament; details may change before it becomes law.