IPSE have also unveiled the top ten worst offending businesses for late payments in the UK following the launch of its new Payment Practices Index. We give them a high five for putting these companies in the spotlight and making freelancers more aware of the ones who are likely to delay payment. 

Their research also shows that over a third of self-employed workers (35%) still haven’t been paid on time in the last 12 months. We ask why companies think this is acceptable when there really is no excuse these days for late payments. You never hear of a business not paying a salaried employee, so why should things be any different for a freelancer who has carried out the required work? Interestingly, it was also revealed that the average amount owed to freelancers due to late payment has in fact remained quite stable over the past two years despite reforms, rising from £5,140 in 2020 to £5,230 in 2022.

Did you know that where payment terms are not stipulated within a contract, you must pay the contractor within 30 days of receiving their invoice? For any overdue invoices, the contractor has the right to charge interest for late payment. Failure to pay may result in a statutory demand being received. 

If more is not done to clamp down on late payments, then we risk seeing an ongoing detrimental impact on freelancers and self-employment on the whole. Do you currently use freelancers? Do you always ensure you pay them on time? We’d be interested to hear your views on this one - chat with us using the form below.