Following its mention in the King’s Speech, the Small Business Protections Bill has now been put before Parliament.
The Bill introduces measures that are designed to help alleviate some of the difficulties smaller businesses face in getting paid. They include: - A 60-day cap on payment terms for large businesses paying small suppliers. - Mandatory interest on late payments. This is to be set at 8% above the Bank of England base rate. - A prohibition on withholding retention payments in construction contacts. - New powers for the Small Business Commissioner to be able to investigate businesses that have poor payment practices, arbitrate in disputes and fine persistent late payers. - A requirement for the boards or audit committees of large companies to publish explanations of late payment performance and what steps are being taken to improve.
Smaller businesses will be keenly watching the Bill’s progress through its Parliamentary processes to see when these measures will come into force.
UK businesses are facing a “cost of business crisis”, according to the British Chambers of Commerce (BCC). Its new cost-stack calculator shows government policy alone has pushed up an average firm's expenses by 70% over the past decade, adding roughly £827,000 a year in costs for a typical mid-sized business. About a quarter of the rise stems from the increase in employer National Insurance contributions, with the higher minimum wage and mandatory pension auto-enrolment also major contributors.
Under Making Tax Digital (MTD) for Income Tax, sole traders and landlords with income of more than £50,000 have been required to keep digital records and send quarterly updates to HMRC since 6 April 2026.
