Late-Payment Bill 2026: What Is Proposed

The late-payment reforms are aimed at slow-paying businesses and construction retentions. They are not a new blanket charge to add to every overdue homeowner invoice.

Where the Bill stands

A government response published by Parliament on 28 October 2026 says the Commercial Payments Bill is progressing, with Royal Assent expected in early 2027. That is an expected timetable, not a commencement date for every measure.

The proposed changes

• A maximum 60-day payment term, with limited exemptions.
• Mandatory late-payment interest and time limits for raising invoice disputes.
• Stronger Small Business Commissioner investigation and enforcement powers.
• Measures to prohibit construction retentions, with implementation consultation.

For an invoice overdue now

Use the existing agreed payment terms and current commercial-payment rules. Send the invoice again to the actual payer, including any purchase-order reference.

“Invoice [number] for [amount] was due on [date]. Has accounts received it, and when will payment be made?” If there is a dispute, get the specific issue identified rather than sending the same reminder repeatedly.

Sources: October parliamentary publication and the May announcement. The invoice guide covers the practical booking and billing steps.

Updated 29 October 2026 · Report a factual error