In an effort to improve payment practices for self-employed workers, the Association of Independent Professionals and the Self Employed (IPSE) has named the worst offending late payers in the UK.

Since April 2017, large companies have been required to report their payment practices to the UK government. IPSE has collated information from the latest data release to find the ten companies that take the longest time to pay.

The information covers payments to limited company contractors and other businesses. Payments to umbrella contractors are not included in this information, as these contractors are paid by PAYE.

The ten worst offending late payers

1. Minster Law Limited (469 days)
2. Sutton Maintenance Limited (395 days)
3. Canary Wharf Limited (327 days)
4. Publicis Media Exchange Limited (278 days)
5. ENI Elgin/Franklin Limited (251 days)
6. ISG Interior Services Group UK Limited (249 days)
7. Ernst & Young (Asia-Pacific) Services Limited (192 days)
8. Arriva Rail North Limited (177 days)
9. Rank Digital Limited (145 days)
10. Marken Limited (141 days)

IPSE released the late payment data alongside new research into the impact of late payments on self-employed workers.

The organisation found that, despite efforts to clamp down on late payments, over a third of self-employed workers (35%) haven’t been paid on time in the last year. Nearly one-in-five self-employed workers reported they had to wait over three months for a client to send what they’re owed.

The average amount owed to freelancers because of late payments rose slightly in the last two years, from £5,140 in 2020 to £5,230 in 2022.

Andy Chamberlain, Director of Policy at IPSE said, “Late payments can be threatening to self-employed workers at the best of times. However, at time when the country is going through an unparalleled squeeze in living standards, the failure to clamp down on late payments is fatal to freelancers and the future of self-employment.

“While the government has made good progress in tackling late payment in recent years by creating the Small Business Commissioner role and promoting the Prompt Payment Code, more still needs to be done.”

The ongoing cost-of-living crisis has intensified concerns about the impact of late payments. IPSE research shows that one in five self-employed workers has reported not being able to cover basic living expenses like rent or bills after a late payment.

Furthermore, nearly a quarter (23%) said they have used credit cards or overdrafts to make up a shortfall and 21% said they have used all or most of their savings because a client hasn’t paid on time.

Research also shows that late payments can have a significant impact on the mental wellbeing of contractors. Almost half of the survey respondents said they have felt stressed or anxious because they haven’t been paid on time. Almost one-in-three said they felt less productive because of a late payment, while 28% said they have lost sleep and 26% said they have experienced a lack of confidence because of late payments.

Miles Grady, Director of Umbrella.co.uk, said: “Late payments have always been a problem for self-employed workers and are one of the big reasons why we are seeing more contractors switch to umbrella companies. Using an umbrella means that contractors can still target those bumper pay days, but there’s a little bit more security about when you get paid.”

For more information about umbrella contracting and late payments, speak to a member of the team today. Call: 01625 546 610.