UK Late Payment Statistics 2025: The Numbers Every Freelancer Should Know
If you think you're the only one chasing invoices, you're not even close. Here's the full picture.
Late payment isn't a minor inconvenience — it's a structural problem in the UK economy. According to the 2025 QuickBooks Small Business Late Payments Report, 62% of UK small businesses are dealing with overdue invoices, with the average small business owed £21,400 in late payments.
The 2025 Coface UK Payment Survey paints an even starker picture: 90% of UK companies experienced late payments, with small firms bearing the worst of it.
Late payments by industry
Not all industries are hit equally. Here's how the numbers break down:
Construction is the worst-affected sector by a significant margin. According to the Coface survey, the average payment delay in construction is 38.2 days past the due date. Industry reports have noted that late payments are a significant contributing factor to financial difficulties across the sector.
Marketing and creative industries face a different version of the problem — invoices are typically paid 15 or more days late, and freelancers in these sectors often lack the leverage or confidence to chase firmly.
The human cost
That's nearly a full working month spent on admin instead of earning. For a freelancer billing £300-400 a day, that's potentially £6,000-8,000 in lost productive time every year — on top of the money they're actually owed.
The FSB/GoCardless Late Payments Report 2025 found that 52% of small business owners simply forfeit late payments up to 10 times a year because the time and cost of chasing isn't worth it. Over a quarter have had to take out short-term financing to cover cashflow gaps caused by late payers.
And it's not just financial. 61% of small businesses say late payments are holding them back from reaching their full potential. The stress of unpredictable income affects hiring decisions, investment, and mental health.
The domino effect
Late payments don't just affect the person who's owed. 36% of small businesses say that late incoming payments affect their ability to pay their own suppliers on time. 18% say it's impacted their ability to pay employees. When one business pays late, it creates a chain reaction through the entire supply chain.
Micro businesses — those with fewer than 10 employees — are hit hardest. They have an average of 4.6% of their total turnover tied up in late payments at any given time. That might sound small, but for a business turning over £100,000, that's nearly £5,000 permanently inaccessible. For many, that's the difference between making payroll and not.
What's being done about it
The UK government has taken several steps in recent years. The Payment Practices Regulations were expanded in 2024, requiring large companies to report publicly on their payment performance. A new Fair Payment Code launched in December 2024, overseen by the Small Business Commissioner. And there's an active consultation running through 2025 on further measures to tackle late payment practices.
But regulation is slow and enforcement is limited. The reality for most freelancers and small businesses is that getting paid still comes down to how effectively you chase.
What you can do right now
The single most effective thing you can do about late payments is chase them promptly, professionally, and consistently. Research consistently shows that businesses who follow up on 90% or more of their invoices get paid significantly faster than those who don't.
That's exactly what PingPaid is built for. Enter your invoice details and get a full 4-email escalation sequence — from friendly reminder to final notice — tailored to your industry and client relationship. Because the data is clear: the sooner and more professionally you chase, the more likely you are to get paid.
PingPaid is a communication tool that helps you write professional payment chasing emails. It does not provide legal, financial, or debt recovery advice. The content on this page is general information only — not professional guidance. If you need advice about recovering a debt or your legal rights, please consult a qualified solicitor or contact Citizens Advice.