Freelancers hit by late payments – business news 17 November 2020.

James Salmon, Operations Director.

Freelancers hit by late payments, lockdown curbs less costly second time round, freeports, Greggs, support for football clubs, Brexit, house prices falling covid-19, market and other business news.

Here are CPA we want to share the business news stories we have seen that we think will affect our members and readers. Many of us are busy fighting to protect our businesses and therefore might have missed some of the news that could impact small businesses, their owners and those that sell on credit.

Freelancers hit by late payments

One million UK freelancers have been pushed into debt since the pandemic hit, according to a new report, ‘The Cost of Covid: How the pandemic is affecting the self-employed’, released by the Association of Independent Professionals and the Self-Employed (IPSE) and digital bank, Starling.

The research shows how the number of freelancers has shrank during the pandemic, how many have been forced to take on additional debt and they have had limited access to government support.

The analysis shows that a fifth had taken on credit card debt, one in seven has become overdrawn and more than a quarter have emptied their savings. Almost a fifth of self-employed workers polled said they will need to borrow to pay tax bills come the end of the business year.

The IPSE report shows that a third of sole traders have accessed the self-employed support scheme rolled out by the Chancellor, while a fifth of company directors have used the furlough scheme. However, a number of freelancers have been excluded from state aid schemes, including PAYE contractors, the newly self-employed and those who pay themselves in dividends. Figures show that the number of self-employed workers has fallen from around 5m before the COVID-19 outbreak to around 4.5m today.

The research shows that freelancers’ finances have been particularly hit  by an increase in late payments during the pandemic. Over a third (36%) of freelancers said that instances of late payment have increased and over a quarter (28%) have been paid late by a client during the pandemic. As a result, 17% of freelancers find themselves unable to cover work-related expenses and 15% can’t pay their own basic living expenses.

The rise in late payments during the pandemic is also affecting the mental health of the self-employed.  Almost half (48%) of freelancers who had  experienced late payments said it left them feeling stressed or anxious and almost a third (31%) said they lost sleep over it.

This increase in late payments is also disproportionately affecting women freelancers, as the research showed that they are more likely than men (67% vs 52%) to have encountered late payments  with clients. Women also reported late payments having a worse effect on them and were more likely to say that it led to them feeling stressed (56% vs 45%) and losing sleep (39% vs 26%). They were also more likely to find that late payments had left them with no money to cover work-related expenses (23% vs 15%) and even basic living costs (22% vs 11%).

Chloé Jepps, Head of Research at IPSE , said: “This research shows in detail the drastic and deeply concerning impact the coronavirus pandemic has had on freelancers’ finances. In particular, it shows how its effects are likely to last for years to come, as many freelancers have burned through their savings and turned to credit cards and borrowing to get by. The pandemic led work to dry up across the sector, and too few freelancers have accessed government support – often because they are excluded from it. The situation has been worsened by the increase in late payment – particularly for female freelancers. Before the pandemic, female freelancers were often in a less secure financial position than their male counterparts (in large part because of the gender pay gap). Now, poor payment practices are making the situation even worse, disproportionately affecting their finances and even mental health. The government has rolled out some support for the self-employed, but it must urgently look at ways to make this more flexible and fair – to ensure it reaches all self-employed in need. It should also look at new and longer-term ways to address the freelancer financial crisis: particularly the damage done by late payment and the disproportionate taxes still hanging over many struggling self-employed.”

If you have been affected by late payments, CPA can help you. Not only can we help speed up late payers who owe you money now, but we can also help you get compensation from those you used to trade with who paid you late in the past. Contact us to see how we can help you.

Lockdown curbs less costly second time round

Current restrictions are seemingly having a less severe impact on the economy than the UK’s initial coronavirus lockdown, with high-frequency economic indicators largely unchanged since before the latest restrictions were imposed.

Covid-19 general news

The UK had 21,363 new cases yesterday. Globally 535,993 cases were added.

The US drugmaker Moderna announced on Monday that its coronavirus vaccine was 94.5 percent effective, adding to the Pfizer announcement last week. The big difference is that while Pfizer’s vaccine needed to be stored at extremely low temperatures, Moderna’s only needed to be kept at normal refrigeration temps and has a longer shelf life.

Prime Minister Boris Johnson, who had a bad case of Covid-19 in April, is in quarantine after having a meeting with an MP later tested positive.

Boris Johnson was also advised to consider strengthening regional restrictions ahead of the country exiting its second national lock-down next month.  The three-tier system of social-distancing rules in place before Johnson ordered a four-week lock-down  not wholly effective, and a winter of tougher measures may be needed, said Susan Hopkins, deputy director of Public Health England.

President-elect Joe Biden warned that “more people may die” unless President Donald Trump co-operates with his transition team. Not least in co-ordinating America’s vaccination programme.


Markets rose on the Moderna vaccine news.  The FTSE 100 rose 1.7% and the 250 1.8%. Similar rises were seen across Europe.   Overnight in the US, the DOW rose 1.60% to new record at 29964.29, the S&P 500 rose 1.16% and the NASDAQ also rose 0.80%. Investors continue to rotate into stocks more sensitive to economic growth. Oil rose over 4% on the news while Gold fell around 1%. The pound has risen to 1.323 USD and 1.114 Euros as the US dollar was predicted to fall 20% in 2021 by Citigroup.


UK Chief Brexit Negotiator David Frost has reportedly told Prime Minister Boris Johnson to expect a trade deal with the EU “early next week”.


Greggs has announced plans to cut more than 800 jobs as a result of the ongoing coronavirus pandemic

Clubs to score escape from winding-up orders

Ministers are set to announce that football clubs struggling due to the impact of the coronavirus outbreak will escape winding up orders during the remainder of the pandemic. Culture Secretary Oliver Dowden is reportedly planning to say that while PAYE tax codes will remain in place, HMRC will suspend any potential court action against clubs. The English Football League has been lobbying for a tax holiday. Figures released in October showed that EFL clubs owed £77.6m in unpaid taxes excluding VAT, with the total now believed to be around £90m.

Free ports to offer tax breaks

The Treasury has announced that firms in regions granted free port status will see perks including relief from national insurance contributions for up to three years for employees earning a salary of up to £25,000. This amounts to a tax break of £2,240 per worker for firms within the new hubs. The announcement came as the Treasury opened applications for towns and cities to apply to become one of the seven special economic zones. The plan will see the creation of hubs where goods can enter the UK with zero tariffs.

Asking prices down with duty holiday end in sight

Rightmove has revealed that with people looking to get sales in place before the stamp duty holiday comes to an end in March 2021, the average asking price in October was £1,505 less than in September, falling 0.5% to £322,025. Analysis shows that through October, demand and activity was strongest in price bands where buyers will make the biggest savings thanks to the stamp duty holiday, with the number of sales in the £400,000 to £500,000 price band up 106% year-on-year. Meanwhile, the property portal estimates that 650,000 homes in the UK are currently in the process of being sold, a 67% increase on the total recorded a year ago.

HMRC warns firms over shifting profit

HMRC has issued warning letters to multinational companies, saying those shifting profits to other jurisdictions to cut their British tax bill must review their operations and change incorrect practices. The letters, which mark the return of a clampdown that had been paused because of the coronavirus pandemic, say that investigations often find that “profits do not reflect the value created in the UK”, with tax investigators seeing “indications of careless or deliberate behaviour requiring penalties to be considered”. Firms have been given 90 days to review their operations and submit any relevant information to HMRC. The Revenue estimates that 2,000 large businesses with operations in the UK may owe a total of £34.8bn in taxes for 2019/20 financial year, up from £29.9bn in 2018/19.

ECB: European debt not unsustainable

European Central Bank chief economist Philip Lane insists that although European governments are running up record deficits in a bid to support their economies amid the coronavirus crisis, the surge in public spending will not make debt levels unsustainable. Mr Lane said that while there will be more public debt, “in the context of very low interest rates, in the context of the macroeconomic environment, the assessment should be that this is something that is sustainable”.

Don’t let Covid-19 bust your business!

It will if your cash flow dries up, either sooner or later.

The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for sometime to come.

CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. Above all tactfully, because maintenance of goodwill is paramount.

To meet the needs of creditors in the current crisis, we have designed a “critical care” package especially tailored for the situation.

  • The annual package costs start at very low rates
  • A minimum performance warranty is provided
  • Several complimentary services included

Clients instruct CPA on-line via their PC or phone, completely user-friendly. Your late paying customers are told to pay you direct (not to us).

A very recent report shows a 23% increase in the number of unpaid invoices since March 11th THIS YEAR – are you getting a build-up of late payers?

Right now, overdue accounts must be a concern and CPA has a great track record of encouraging slow-payers to pay their suppliers quickly.

It takes less than 17 minutes to see how you would benefit, do you have the time now?

No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email today.

When you see your money come in, you will be so glad you used CPA.

Do you sell on credit?

With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.

Those customers will look for the easiest option to boost their cash-flow. Don’t let it be you.

You can’t just assume your customers can and will pay you eventually, no matter how big their name is.

It is essential to have credit management systems in place to monitor and check your customers credit worthiness.

It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.

About CPA

The Credit Protection Association can help!

Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.

At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.

We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.

Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.

If you supply on credit, help us help you identify the risks.

Why use a third party collector?

As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When your customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.

Over the years we have collected billions in overdue invoices for our customers.

Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.

You might be hesitant about contacting a debt collection agency. What are they going to be like?

Can they help your particular type of business?

There is no need for concern. CPA are courteous, helpful and very probably have had direct experience of working with your type of business.

Debt collection agencies are not all alike.

Success lies in both recovering money and keeping customers happy. The Credit Protection Association was founded in 1914 and has helped tens of thousands of UK businesses to collect outstanding payments and reduce the risk of incurring bad debt. We believe that creditors deserve to be paid for the work or goods they have supplied but we fully understand the need to maintain
the best possible relationship with customers!

At The Credit Protection Association, we provide solutions, advice and back-up in all areas relating to the supply of services or goods on account. Client-members receive everything they need from a single source to reduce debtor days and write-offs.

The Credit Protection Association has helped has assisted tens of thousands of UK businesses with their credit control requirements, since the First World War.

We are polite, firm and efficient when it comes to recovering outstanding debt.

“We have used CPA for a number of years now. The website is easy to navigate around with lots of helpful reports. The staff are always at hand and very friendly. CPA has helped us reduce our debt over the years and keep track of potential issues with our customers.”
~ CPA client in Buckinghamshire

“The service from CPA has proved to be everything that you said it would be. We have already seen a huge benefit. We have had a number of overdue accounts paid promptly and directly to us. It is also a huge weight off our mind to know that once we have passed an overdue payment over to you, you take care of everything whilst keeping us informed.
~ Credit Controller client in Warrington

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections


Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

CPA is passionate about late payment

The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.

We are extremely passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs, with cash flow difficulties being the single biggest killer of Britain’s small businesses.

If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.

As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.

Under little used legislation, you are entitled to compensation for those late payments.

You put up with the PAIN – now claim the GAIN!

Now you can boost your own cash-flow.

CPA can help unearth the those hidden treasures.

We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.

Did you know that your business is entitled to a minimum of £40 for every commercial invoice paid late to you over the past 6 years?

How many of your invoices are paid late each month – 20, 50, 100 or more?

At £40 per invoice that’s claim of £57,600, £144,000, £288,000 plus interest. The more invoices the bigger the claim! 

At £100 per invoice it’s £144,000, £360,000, £720,000 plus interest.

Discover NOW the potential value of late payment compensation hidden in your sales ledger!

For over 20 years, CPA has calculated and recovered Late Payment Compensation on behalf of Clients!  

Yes, CPA can help you boost your business cash-flow.

Don’t let your bankers control you, contact CPA today.

Discover NOW the potential value of late payment compensation hidden in your sales ledger!

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.

Read our blog here on how to crack down on the late payment culture.

Read our blog here on how to give late payers the slap they need.

The “Why” of the late payment culture.

New PM should walk the walk and back small firms over late payments

Paying late is “crack cocaine” to big business.

Late payment culture risks “spiraling out of control”

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

Do you realise you could be sitting on a fortune?

Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.

If you sold B2B on credit then there may be a hidden source of capital you can call on.

If you fancy an extra bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.

Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.

We can help you uncover the pile of gold, you didn’t even know you were sitting on.

If you trade with other businesses and were often paid late then you could be entitled to significant compensation.

Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.

Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.

You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.

That compensation could provide the cash boost your business needed.

But don’t delay, that compensation evaporates if not claimed within six years of the late payment.

How can CPA help?

CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.

We recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.

Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.

CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.

The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit. You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.

We do the work, you receive the cash.

If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.

We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.

We are helping business owners who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.

Those former clients who regularly paid you late can finally be made to pay.

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.

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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.