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For businesses paying invoices

The new UK payment rules

The biggest late-payment reform in 25 years arrives in 2027. What changes, at a glance — and how Paydance keeps you ahead of it.

Coming in 2027

The Commercial Payments Bill, now before Parliament.

60-day cap on payment terms
Anything longer becomes unenforceable — unless both sides are large businesses.
Checking is deemed done at 30 days
Treated as finished 30 days after the work is done, whether or not it actually is. The payment clock runs either way.
Disputes need eight days' notice
Raised later or vaguer, and the supplier can claim the higher of £40 or 1% of the amount in dispute.
Mandatory late-payment interest
8% above the Bank of England base rate, whatever the size of either business. It cannot be waived.
Fines up to 1% of annual UK turnover
New Small Business Commissioner powers to investigate persistent late payers and settle disputes without court.
Construction retentions banned
Withholding retention payments will be prohibited.

Already in force

Late-payment value reported (2025)
Qualifying businesses now report what their late payments are worth, and the share of invoices unpaid over disputes.
Payment practices in annual reports (2026)
Large companies must disclose them in their audited Directors' Report.

The Fair Payment Code

Voluntary recognition from the Small Business Commissioner — public proof you pay well.

  • Gold 95% of all invoices paid within 30 days.
  • Silver 95% within 60 days, and 95% of small-business invoices within 30.
  • Bronze 95% of all invoices paid within 60 days.

What Paydance does for you

  • The clock starts when they sent it

    Every invoice is dated from the moment the supplier sent it — the days you count are the days they have actually waited.

  • Disputes raised in time, with proof

    Queries live on a shared, dated timeline the supplier can see and answer — exactly what the eight-day rule turns on.

  • Your payment number, ready to report

    Choose how many days you aim to pay within; Paydance measures what you actually do. When reporting or the Fair Payment Code asks, you already know.

  • Every invoice gets a due date

    Where none is stated, Paydance applies the law's own default of 30 days, says so honestly, and lets the supplier set the real date.

Paydance is not legal advice. The rules above are summarised from public sources at the time of writing.

Paydance shows what has happened, what is waiting, and what needs to happen next.

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Sources