The Association of Chartered Certified Accountants (ACCA) has urged the UK government to address the issue of late payments by implementing practical solutions that businesses can easily adopt.
According to the ACCA, late payment practices in the UK negatively impact small businesses and hinder their growth.
Research conducted in September 2025 indicates that 35.6% of UK small and medium-sized enterprises (SMEs) have experienced difficulties in receiving timely payments.
The ACCA has expressed general support to the government’s efforts on the consultation on late payments aimed at addressing the poor payment practices.
It suggests that requiring audit committees of large companies, or a designated responsible individual in the absence of such committees, to take responsibility for payment practices could enhance transparency regarding companies’ payment behaviours.
ACCA has urged the Department for Business and Trade (DBT) to adopt a practical approach to avoid delaying the implementation of a 60-day maximum payment term for UK businesses. It also recommended the use of ‘comply or explain’ rule.
ACCA UK head of technical and strategic engagement Glenn Collins said: ‘This is a more pragmatic as exceptions will be inevitable.
“Such an approach will help mitigate against any negative perceptions of the business environment that may be created if no allowances were made for those inevitable exceptions, while still ensuring business suppliers are fully informed before entering contracts.”
The ACCA has proposed enhancing the authority of the Small Business Commissioner (SBC).
ACCA policy lead for UK and EEMA Joe Fitzsimons said: “It is clear change is needed to tackle the late payment issue, and this would be best achieved by giving the SBC greater power. However, any additional powers must be matched with adequate resourcing. Adopting the Pollute Pays Principle -where persistent late payers bear the costs of SBC’s investigative work – would clearly help.”
ACCA has expressed opposition to the implementation of mandatory statutory interest as an initial measure. It suggests that other reforms, such as granting additional powers to the Small Business Commissioner (SBC), should be implemented first. Following these reforms, a post-implementation review should be conducted. If sufficient progress is not observed, mandatory statutory interest could then be considered as a subsequent measure.
Collins said: “The issue of late payments has gone on too long. We need to ensure this issue does not become bogged down again. We have made practical suggestions to DBT that meets the needs of business of all sizes. The government should quickly enact solutions that will resonate and kick start growth.”
Recently, ACCA and the Association to Advance Collegiate Schools of Business (AACSB International) signed a memorandum of understanding (MoU) for supporting business education.
