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IPSE praises landmark late payment clampdown 1

IPSE praises “landmark” late payment clampdown as government unveils tough new laws

IPSE has welcomed new measures to tackle late payments to freelancers and small businesses.

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IPSE Press Office
31 Jul 2025
2 minutes
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The UK’s self-employed trade body, IPSE, has hailed new government proposals to legally cap payment terms to small businesses, calling it “landmark moment” that could protect thousands of freelancers from going under.

Unveiled today as part of the government’s Small Business Plan, the proposals include a maximum 60-day payment term – set to fall to 45 days – and mandatory interest on overdue invoices.

Persistent late payers could also face fines under expanded powers for the Small Business Commissioner.

Late payment is one of the most pressing issues facing freelancers and self-employed business owners. IPSE has previously called for a statutory ceiling on payment terms to freelancers.

Vicks Rodwell, Managing Director at IPSE - The Self-Employed Association, said: “We’ve long called for a legal payment deadline, so this is a landmark moment that could help level the playing field for freelancers."

“Late payments can force freelancers out of business, but obscenely long payment terms for work can put just as much of a strain on the self-employed.”

“It’s not right that freelancers can fall behind on their own bills – or even into debt – while their clients sit on money for months at a time.

“By clamping down on late invoices and limiting long payment terms, the government can tear down one of the biggest barriers to growth for freelancers and sole traders.”

ENDS

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