Adfin | Time to get paid: What the UK’s new late payment policy means for you

Big news from the UK government: the “toughest crackdown on late payments in a generation” has just been announced.

Here's what’s changing, why it matters, and how Adfin can help you stay ahead of the curve.

What's happening?

Late payments are a huge problem for small businesses. According to the government, they cost the UK economy £11 billion every year, and result in 38 small businesses closing their doors every single day.

To tackle that, the government has just released its 2025 Small Business Plan and the focus is clear: get small businesses paid on time.

Key policy changes:

60-day maximum payment terms, dropping to 45 days over time
Large firms face multi-million-pound fines for late payment
A 30-day limit for invoice verification - no more open-ended delays
Audit committees must review payment performance at board level
The Small Business Commissioner gets new powers to enforce compliance, run spot checks and respond to complaints

This is the strongest set of protections for small suppliers in the G7, and it’s set to shift how big businesses handle their supply chains.

Why this matters for accountants and bookkeepers

Let’s start with the obvious: you’re a small business owner too.

You send invoices. You manage cash flow. You wait for payments to come in - sometimes longer than you should.

This isn’t just a policy change for your clients. It’s a direct win for your own practice.

With these new rules in place:

You’ll be better protected from long payment terms
You’ll have legal backing when chasing late invoices
You’ll feel more confident escalating slow payments (even from larger clients)
And you’ll likely see an improvement in your own cash flow, just by setting tighter terms and knowing the law supports you

And of course, this helps your clients too.

You're often the one helping them chase down overdue invoices or plan around cash flow gaps. With the new policy:

It’s easier to push clients to tighten their own terms
You can back up advice with government guidance
And you can encourage them to stop relying on manual follow-ups

It’s a win-win: better payment culture, better cash flow and fewer hours wasted chasing people down.

How Adfin fits into all this

At Adfin, our entire mission is to help businesses get paid faster, with less hassle.

Here’s how what we do ties in directly with the new rules on late payments:

Smart, automated reminders that speed up incoming payments
With tighter legal limits on how long invoices can sit unanswered, following up matters more than ever. Adfin makes it easy to automate reminders via email, WhatsApp or SMS, so your customers pay sooner, you get cash in faster, and you don’t waste time chasing.

Whether it’s your own business or your clients’, faster payments = stronger cash flow and fewer awkward conversations.

Multiple payment options in one place
If someone wants to pay you, don’t make it hard. With Adfin, your customers can pay by card, Direct Debit, Apple/Google Pay or bank transfer - all in one link. That helps you get paid within the new limits (and often much faster).

Instant reconciliation, no chasing
Once you’re paid, Adfin automatically marks invoices as paid and syncs back to your accounting software (like Xero or QuickBooks). No delays or guesswork, just clean books and full visibility, which matters even more if you’re keeping a closer eye on payment terms.

Clear visibility = quicker action

When payment terms are tighter, you need to know exactly what's going on. Adfin gives you a live view of all your invoices: what's been sent, what's due, and what's still outstanding - so you can act fast and stay in control.

Professionalism that sets expectations early
The new rules are all about changing payment culture. With Adfin, you’re not chasing manually or sounding desperate; you’re sending friendly nudges from a platform that shows you mean business.

How to spot non-compliant payment terms

The new rules mean more businesses will be under pressure to clean up their payment practices, but how do you know if your terms (or your clients’) are actually compliant?

Here’s a quick guide:

Payment terms over 60 days? Not compliant under the new rules (and expected to reduce to 45 days).
No stated payment terms at all? That’s a red flag - you’ll need to get those clearly in writing.
"We’ll pay once the invoice is approved"? Not good enough. There’s now a 30-day cap on invoice verification.
Slow response to chasing? Could breach fair payment guidelines, especially if the invoice was valid and undisputed.

We’ll be working on making these easier to spot within the Adfin console, but in the meantime, use this guidance to help you stay ahead of the rules and avoid the pitfalls.

Final thoughts

This is more than a policy change. It’s a shift in expectations.

Late payments have been a “normal” part of small business life for too long, but that’s starting to change. With the government cracking down and the law on your side, now’s the time to modernise how you get paid.

Whether you’re an accountant, a bookkeeper, or a business owner, you shouldn’t have to chase for money that’s owed.

Let Adfin take the weight off.

Curious about the full policy? Read the official government announcement if you fancy a deep dive.

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Want to get your invoices paid faster (without the awkwardness)?

Whether you’re managing your own payments or your clients’, Adfin makes it easy.

Book a demo or sign up today.

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Time to get paid: What the UK’s new late payment policy means for you

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