BILLIONS of pounds in late payments are owed to self employed tradespeople across the UK, according to new research from Ford Pro.
The vehicle manufacturer’s research found delayed or missing payments to tradespeople was reported as the major issue facing sole traders heading into 2025.
Tradespeople are owed as much as £3.5 billion in overdue payments, which equates to an average of £3,942 each. It’s the equivalent of over a month’s salary for a typical UK tradesperson.
Almost two-thirds of tradespeople experience late payments, with an average delay of 35 days. And over two-thirds of UK tradespeople have experienced outright payment refusal – taking its toll on home and family life.
Behind this figure emerges a worrying trend among homeowners, with 18% admitting to spending tradespeople’s payments on personal luxuries, such as dining out. Meanwhile, 14% of UK homeowners have admitted to forgetting to pay altogether.
Late Payments Strain
The financial strain of late payments means 23% of tradespeople are struggling to cover essential bills each month. Almost one in five (17per cent) are resorting to payday loans to make ends meet.
One in five tradespeople expressed concern about their ability to support their families this Christmas. The same percentage admitted to cancelling holidays in the past due to late or withheld payments.
To tackle the late payment crisis head on Ford, the manufacturer of the Transit van – the best-selling van in the UK for 58 consecutive years, conducted a social experiment with UK homeowners.
The results highlight that getting customers to pay quicker could be as simple as raising awareness among homeowners.
In fact, 67% of homeowners say they would pay invoices faster if they understood the impact of delayed payments on tradespeople and their families.
Mandy Dean, Director of Commercial Vehicles, Ford UK and Ireland, commented: “We’ve been keeping tradespeople moving for 58 years – they’re the real backbone of Britain, keeping our lights on and our daily lives moving. We believe it’s our responsibility to support them to help their businesses thrive.
“We know that homeowners and tradespeople are all feeling the pressure so we want bring both parties closer together – from helping tradespeople create more effective invoices, to helping homeowners understand the potential impact of an unpaid invoice, it’s not just a number, it’s a meal on a table or a present under the Christmas tree.”
Self Employed and Not been paid? This video has some great tips
