Accountants call for tougher action to tackle late payments

⚠️ Late payments still rife, warns ACCA

💼 The Association of Chartered Certified Accountants (ACCA) has urged the Government to act swiftly to fix the UK’s late payment crisis, warning that poor payment practices continue to harm small businesses and stifle growth.

According to ACCA’s latest research, 35.6% of SMEs reported problems securing prompt payment in 2025 — a figure it calls “staggering.” While the organisation supports the Government’s current consultation on tackling poor payment practices, it warns that reforms must be practical, transparent, and delivered without delay.

Read the full ACCA statement here: ACCA – Poor payment practices still rife and calls for greater transparency from business

⚖️ Key recommendations from ACCA

  • Increase transparency: Large companies should be required to have their audit committees (or a designated responsible individual) take clear responsibility for payment practices.
  • Introduce a 60-day maximum payment term: ACCA backs the move but says it must be implemented promptly, using a “comply or explain” approach to allow limited flexibility where justified.
  • Empower the Small Business Commissioner (SBC): The SBC should have greater authority and be properly resourced, funded partly by persistent late payers under a “Polluter Pays” principle.
  • Delay mandatory interest: Statutory interest should only be considered later if other reforms fail to deliver meaningful change.

“The issue of late payments has gone on too long,” said Glenn Collins, Head of Technical and Strategic Engagement at ACCA UK. “We’ve made practical suggestions that meet the needs of businesses of all sizes. The government should quickly enact solutions that resonate and kick start growth.”

🧩 Why it matters to SME business owners

Professional bodies like the ACCA joining the campaign for reform adds momentum — but until new laws take effect, SMEs need to protect their own cashflow with robust credit control and proactive payment recovery.

💡 CPA Comment

At The Credit Protection Association, we welcome the ACCA’s push for greater transparency and accountability in payment practices. We would want the Government to go further, in beefing up the late payment compensation available to SME’s. But businesses can’t afford to wait for government action.
Our members use CPA’s subscription services — including credit reports, monitoring, and overdue account recovery — to get paid faster and maintain cashflow stability in a tough trading environment.

Join the fight

Don’t wait for policy changes — take control of your credit management today.
☎️ Call Peter Uwins on 020 8846 0000 or 📧 email nsm@cpa.co.uk