Small Business Commissioner: how to complain about late payment

If a larger customer is paying you late, and your business has fewer than 50 staff, you can ask the Small Business Commissioner for help. You first try to settle the dispute yourself, then send the Office of the Small Business Commissioner (OSBC) its online enquiry form, usually within 12 months of the payment due date. The service is free, and the Commissioner can make recommendations and publish a report naming the customer.

What is the Small Business Commissioner?

The Small Business Commissioner is an independent public body set up under the Enterprise Act 2016. GOV.UK says it promotes fair payment practices for the UK’s 5.5 million small businesses and helps them resolve payment disputes with larger businesses.

The current Commissioner is Emma Jones CBE, who marked a year in the role on 30 June 2026. The office is based at 23 Stephenson Street, Birmingham, B2 4AJ, and is open 9am to 5pm, Monday to Friday.

Can you complain? The eligibility checklist

You can use the service if all of these are true:

• Your business has fewer than 50 staff. Staff include employees, directors and some partners or LLP members.
• Your customer is larger, with more than 50 employees.
• Both of you are in the private sector.
• Your customer has some form of UK presence.
• The payment was due within the last 12 months.
• You have already tried to resolve it with the customer directly.

Under the Scope and Scheme Regulations 2017, your headcount can be measured on the date you first contact the Commissioner, on the date the problem began, or as an average. So a business that has since grown past 50 may still qualify.

What the Commissioner cannot help with

Some disputes go elsewhere. The OSBC FAQs list these limits.

The regulations also let the Commissioner dismiss complaints that are already in court or adjudication, or that another ombudsman or regulator has considered. If your dispute is about construction retentions, see our post on the construction retentions ban.

How to complain: step by step

1. Check the invoice is undisputed. The FAQs say interest and compensation do not apply to an invoice that is legitimately disputed.
2. Chase the customer in writing. Send a reminder, then a final demand. Keep copies, because the regulations require you to have raised the issue and given the customer a reasonable chance to respond.
3. Gather your evidence. You will need the contract or terms, the invoice, the due date, your chasers and any replies.
4. Send the enquiry form. Use the Make an enquiry page on the OSBC website. A complaint must be in writing and include the date of the problem.
5. Work with your case worker. The Commissioner sets timetables for both sides to respond. Some cases are settled quickly once the OSBC contacts the customer.
6. Receive the outcome. If the case is investigated, the Commissioner judges it against what is fair and reasonable and makes recommendations.

You can ask to stay anonymous, but the FAQs warn that this may limit the chances of resolving the dispute.

What happens next?

The Commissioner’s recommendations are non-binding, so the customer cannot be forced to pay through this route. There is no right of appeal against the Commissioner’s decision, although you can ask for a review of whether the correct procedure was followed.

The pressure comes from publicity. Regulation 10 lets the Commissioner publish a report and name the customer, taking into account whether it engaged constructively and followed earlier recommendations.

The service gets results. The OSBC reported on 16 October 2026 that it recovered more than £1 million of overdue payments in the first half of 2026-27, after a record £1.5 million in 2025-26.

Claim interest and compensation as well

You can add statutory interest to a late business invoice whether or not you go to the Commissioner. GOV.UK sets the rate at 8% plus the Bank of England base rate, unless your contract sets a different rate.

You can also claim a fixed sum once per invoice:

If no payment date was agreed, a payment is late 30 days after the customer receives the invoice or the goods or service, whichever is later. The OSBC website has an interest calculator.

What will change under the Commercial Payments Bill?

The Commercial Payments Bill would give the Commissioner stronger powers. The government’s Time to pay up plans, published on 24 March 2026, include investigating poor payment practices, adjudicating disputes, and fining persistent late payers.

The bill would also cap payment terms at 60 days when large firms pay smaller suppliers. It is not law yet. See our post on the Commercial Payments Bill for its progress.

What to do now

• Send invoices promptly and state the due date. It makes lateness easy to prove.
• Use the Commissioner early. Waiting longer than 12 months can rule you out.
• Protect your cash flow meanwhile. Our guides to cash flow forecasting and invoice finance cover ways to bridge slow payers.

Frequently asked questions

Is it free to complain to the Small Business Commissioner?

Yes. The OSBC FAQs say there is no charge to use its services.

How long do I have to complain?

You should complain within 12 months of the payment due date. The Commissioner can extend this in limited cases, such as where the customer deliberately ran down the clock.

Can the Small Business Commissioner make a customer pay?

No. Its recommendations are non-binding, but it can publish a report naming the customer. New powers to fine persistent late payers are in the Commercial Payments Bill.

Can I complain about a council or government department?

No. Disputes with public sector bodies go to the Public Procurement Review Service instead.

Does the Small Business Commissioner handle construction disputes?

No. Disputes under the Housing Grants, Construction and Regeneration Act 1996 are outside its remit and go to adjudication.