How to Complain to the Small Business Commissioner
A guide to using the SBC's new 2026 enforcement powers to recover unpaid invoices from larger businesses — including financial penalties and binding adjudication.
What Is the Small Business Commissioner?
The Small Business Commissioner (SBC) is a UK government body set up to help small businesses resolve payment disputes with larger businesses. Created under the Enterprise Act 2016, its original role was advisory — signposting small businesses to mediation and encouraging voluntary compliance.
That changed fundamentally in March 2026 when the government announced sweeping late payment reforms giving the SBC real enforcement powers for the first time.
The SBC's New 2026 Powers
Under the March 2026 reforms, the Small Business Commissioner has been transformed from a mediator into a regulator with genuine teeth:
Financial Penalties
The SBC can now issue binding financial penalties against businesses that systematically pay late. Penalties are calculated as a percentage of the late payer's turnover, making them meaningful for businesses of any size.
Adjudication
The SBC can adjudicate payment disputes out of court, issuing binding decisions. This gives small businesses a realistic alternative to the expense and time of court proceedings.
Public Reporting
Companies that persistently pay late can be publicly named and reported by the SBC. This reputational risk is a powerful incentive for large businesses to improve their payment practices.
60-Day Payment Cap Enforcement
Large businesses must pay smaller suppliers within 60 days. The SBC can investigate breaches of this cap and take enforcement action against offenders.
Mandatory Statutory Interest
Statutory interest at 8% above the Bank of England base rate cannot be contracted away. The SBC can investigate complaints about businesses that include clauses attempting to waive statutory interest.
⚠️ Legislation Status
These powers were announced in March 2026 and require legislation to take full effect. We'll update this page as the statutory framework is enacted. The SBC is already handling complaints under its existing advisory powers.
When Should You Complain?
The SBC is not a first port of call. You should have exhausted informal resolution before filing a complaint. Specifically:
- ✅ You've sent payment reminders and follow-ups
- ✅ You've sent a formal demand including statutory interest
- ✅ Ideally, you've sent a Letter Before Action
- ✅ The debtor is a larger business (the SBC focuses on asymmetric power dynamics)
- ✅ You're a small business, freelancer, or sole trader
Step-by-Step Complaint Process
Step 1: Gather Your Evidence
Collect all invoices, the contract or agreement, correspondence, reminders sent, and any response (or lack of response) from the debtor. The stronger your documentation, the faster the SBC can act.
Step 2: Submit Your Complaint Online
File your complaint through the SBC's website at smallbusinesscommissioner.gov.uk. You'll need to provide details of the debt, the larger business, and what steps you've already taken to resolve the issue.
Step 3: SBC Reviews and Contacts the Debtor
The SBC contacts the larger business on your behalf. This alone is often enough to prompt payment — being contacted by a government body about payment practices is a serious matter for any company.
Step 4: Investigation or Adjudication
If the debtor doesn't resolve the matter voluntarily, the SBC can investigate further and, under the new 2026 powers, adjudicate the dispute — issuing a binding decision on whether the money is owed and when it must be paid.
Step 5: Enforcement (If Needed)
If the debtor fails to comply with the SBC's decision, the Commissioner can issue financial penalties and publicly report the business. You can also use the SBC's findings as evidence if you decide to pursue the matter through the small claims court.
SBC vs Court: Which Should You Choose?
| SBC Complaint | Small Claims Court | |
|---|---|---|
| Cost | Free | £35–£455 |
| Best for | Disputes with larger businesses | Any B2B debt up to £10,000 |
| Outcome | Binding adjudication + penalties | CCJ (enforceable court order) |
| Timeline | Varies (typically weeks) | 2–4 months |
Frequently Asked Questions
What does the Small Business Commissioner do?
The SBC helps small businesses resolve payment disputes with larger businesses. Under the new 2026 reforms, the SBC can investigate complaints, adjudicate disputes, issue financial penalties, and publicly report companies with poor payment practices.
When should I complain to the Small Business Commissioner?
After you've exhausted informal resolution — reminders, formal demands, and ideally a Letter Before Action. The SBC is designed for disputes with larger businesses that have more negotiating power than you do.
What are the SBC's new 2026 powers?
The SBC can now issue financial penalties (a percentage of turnover), adjudicate disputes out of court, publicly name companies that systematically pay late, and enforce the 60-day payment cap on large businesses.
Does it cost anything to complain to the SBC?
No. The SBC complaint process is entirely free. This makes it an accessible alternative to court proceedings for small businesses that can't afford legal action.
Document Everything Automatically with Experi
When you file an SBC complaint, you need evidence of every chase, every reminder, and every day the invoice was overdue. Experi records it all automatically — dates, amounts, and correspondence.
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