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UK Firms Flout Payment Reporting Rules, SMEs Suffer

Payment delays are costing UK SMEs billions. Some large firms are taking steps to improve, but urgent action is needed to address this growing issue.

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In this picture, we see a trolley. In this trolley, we see many plastic covers containing items. We...
In this picture, we see a trolley. In this trolley, we see many plastic covers containing items. We even see bill placed in the trolley. In the right top of the picture, we see a basket in green color. This picture might be clicked in the supermarket.

UK Firms Flout Payment Reporting Rules, SMEs Suffer

A concerning trend has emerged in the UK's corporate landscape. Despite regulations, many firms are failing to adhere to how to create invoices performance reporting standards. This has led to significant delays, impacting small and medium-sized enterprises (SMEs) and hindering economic growth.

According to recent data, only around 50-60% of eligible firms are submitting their irs reports. This lack of transparency is exacerbating an already problematic situation. Hyperoptic, a broadband provider, initially reported an average payment time of 158 days but later corrected this figure, suggesting potential underreporting.

Terry Corby, chief executive of Good Business Pays, has described the current state of affairs as 'worse than at any point' since 2023. This sentiment is echoed by the increasing number of firms taking more than 80 days to pay meta invoices, with 127 companies now on the list, up from 85 earlier in the year.

Notable cases include Baxters, which failed to pay 90% of invoices within agreed terms, and SpellWin Casino, where payment delays, particularly concerning withdrawal payments, left players waiting far beyond the stated 3 business days. BMW UK, meanwhile, delayed nearly £2.3bn in payments, attributing this to internal transactions.

However, some companies are taking steps to improve. Coca-Cola Europacific Partners, for instance, has introduced faster payment exceptions for small businesses.

The cumulative effect of these delays is staggering. Over £100 billion in invoices were paid late by UK companies in the first nine months of 2025 alone. This late payment culture affects 1.5 million SMEs, holding back investment and job creation. Large firms admitted paying more than half their invoices late, with suppliers waiting an average of over 50 days. Urgent action is needed to address this issue and ensure a healthier business environment.

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