Click here to
Get an instant quote

Late payment fine powers issued

Freelance contractors have long suffered financial costs as a result of late payments, but now the government has finally agreed to steps that could see firms that do not pay on time hit with fines.

The government has stated that new powers will be provided to the Small Business Commissioner, giving this body the freedom to fine larger firms that delay payments. This will be the first time the commissioner has had the option of taking direct action of this sort on behalf of contractors and comes in the wake of a consultation into the issue that took place last autumn.

Imposing penalties of this kind on late paying companies was recommended by those MPs that sat on the BEIS Select Committee for Small Business and Productivity at the end of last year. In addition, nearly 300 small businesses gave their thoughts during the consultation, which appears to have further swayed the government.

According to Contractor UK, Andy Chamberlain of IPSE said:

“For the two thirds of self-employed people who experience it, late payment means no income, empty bank accounts, debt and possibly destitution. (The business department’s) announcement is a welcome step in the right direction.”

There have been those who suggested ever since the commissioner was launched two years ago that it would be unable to do anything meaningful to help small firms unless it was able to dish out fines where necessary. Micro firms already have contractor accountants in Liverpool and other places that they can turn to for advice.

Posted by Louise
July 1, 2019
Small Business

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment