More than £100 billion in overdue invoices were logged by UK companies in the first nine months of 2025, as late payment practices hit record levels and small businesses bear the brunt.
Analysis of government filings by the campaign group Good Business Pays shows that a record number of large firms admitted paying more than half their invoices late this year. On average, suppliers were left waiting more than 50 days for payment, while 127 firms reported taking more than 80 days, up sharply from 85 earlier this year.
In total, £109.2 billion in invoices were paid late between January and September, according to the study of 5,000 company reports under the UK’s Payment Practices and Performance Regulations. The government estimates late payments affect 1.5 million SMEs, holding back investment and job creation.
High-profile offenders
Among the companies named were BMW, Baxters and Hyperoptic:
• Baxters reportedly failed to pay 90% of invoices within agreed terms.
• Hyperoptic declared an average payment time of 158 days, though later said its filing was in error.
• BMW UK was cited as delaying nearly £2.3bn in payments, but said the figures reflected internal transactions, not supplier invoices.
Terry Corby, chief executive of Good Business Pays, said the situation was now “worse than at any point” since the campaign began monitoring in 2023.
“We must now see real accountability and real consequences for poor payment practices.”
While Coca-Cola Europacific Partners previously drew criticism for 110-day payment times, it has since introduced exceptions to pay small businesses faster — a model Corby said others should follow.
Despite a legal requirement for large companies and LLPs to publish their payment performance since 2017, compliance is patchy. The Department for Business and Trade estimates that only 50–60% of firms that should file reports actually do so.
Small business commissioner Emma Jones admitted her office lacks the power to fine persistent offenders, and is unlikely to gain enforcement capability until 2028.
The government has branded late payments a “scourge” on the economy, estimating they cost nearly £11bn annually and force 38 small businesses to close every day due to cashflow crises. New procurement rules introduced this week mandate government contractors to pay suppliers within 45 days — but business groups say much tougher action is needed to protect SMEs.
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UK firms hit record levels of late invoice payments, leaving SMEs £109bn out of pocket