PHAM NEWS | APRIL 2026 18 Business Matters


Crackdown on late


payments


The government has announced business reforms which are claimed to represent the toughest crackdown on late payments for 25 years. The new measures are designed to provide protection for small businesses and include new powers for the Small Business Commissioner, heavy fi nes for big businesses and persistent off enders, and a ban on withholding of retention payments under construction contracts. Changes will include a new


60-day cap on payment terms on all large fi rms when paying smaller suppliers. New mandatory interest on late payments will also be introduced, with a requirement for all commercial contracts to include statutory interest set at 8% above


the Bank of England base rate. “Far too many businesses are


forced to shut down because they have not been paid – that is simply unacceptable,” says Business Secretary Peter Kyle. “We’re unveiling the strongest, most robust changes to payment laws in over a generation – laws that will transform the fortunes of small businesses for years to come and make their day to day lives easier.” The Building Engineering


Services Association (BESA) has


welcomed the government’s announcement, describing it as a landmark and long-awaited victory for specialist contractors across the UK. The Association has been lobbying for reform on retentions and late payment practices for many years and has played an active role in shaping the consultation. David Frise, chief executive of


BESA, says: “This decision has the potential to transform cashfl ow, improve business resilience, and


Website builder


brings business Powered Now has launched Here Is My Work, a website builder helping HVAC tradespeople stand out and win work. Users can create professional, shareable portfolios in minutes by uploading photos and videos of completed jobs, adding AI-generated descriptions, and showcasing Google reviews. Features include QR codes, invoicing integration, mobile uploads, and built-in contact forms. Free to join – with a Premium plan offering custom domains, SEO tools, and advanced customisation – the platform allows tradespeople to present their work professionally and attract new customers without relying on third-party sites. ◼ phamnews.co.uk/426/27


Installers losing out by not quoting for travel costs


A study by temporary business van insurance provider Tempcover found that 77% of tradespeople believe they undercharge for travel-related expenses when quoting jobs. Commonly overlooked costs include congestion charges, tolls, and road tax, with the typical undercharge ranging from £6-£20 per job. With an average of nine client


visits per week, an undercharge of £15.89 per job adds up to around £139 weekly, £555 monthly, or over £7,200 annually, showing how travel costs can signifi cantly aff ect overall revenue. The survey also revealed wide


variation in how tradespeople account for travel costs: 40% include it in their overall quote, 22% adjust hourly or daily rates, 18% charge a separate call-out or travel fee, 14% don’t factor in travel at all, and 6% were unsure. The specifi c costs considered


also diff er. Mileage (48%) and fuel


or EV charging (45%) are most commonly included, followed by insurance (38%) and vehicle upkeep (36%). Less consistently accounted for are parking (22%), congestion charges, ULEZ fees, or tolls (20%), and road tax (15%), suggesting many tradespeople are still underestimating the full cost of travel when quoting jobs. Claire Wills-McKissick,


temporary business van insurance expert at Tempcover, comments: “Our research indicates that travel expenses are often omitted from quotes, which can result in thousands of pounds in unrealised income over time. In a competitive market, there can be pressure to keep quotes low to secure work, but consistently under-accounting for travel costs can have a signifi cant impact on a business’s bottom line. Factoring travel time and costs into job quotes allows for more accurate cost recovery.”


Tool theft and van property damage hitting bottom line


The rising cost of property damage from van break-ins, particularly ‘peel and steal’ attacks, and stolen tools is aff ecting installers’ bottom line. Tool theft has increased by 24% since 2020, costing tradespeople an estimated £98.9 million last year. Research from small business


insurance provider Simply Business shows that over half of 645 surveyed tradespeople had experienced tool theft, with 94% reporting that none of the stolen equipment was recovered. Worry about theft is also having an impact on mental health, with 77% saying it has aff ected them. Tradespeople’s outlook is


largely negative. Nearly two- thirds (65%) believe tool theft is getting worse, while just 2% think the situation is improving. A


create a fairer, more sustainable supply chain. It is particularly encouraging that policymakers engaged directly with our members during the consultation process. That real-world insight has clearly helped shape a more robust and meaningful response.” The issue of retentions has long been a major concern for SMEs in construction, with many businesses suff ering from withheld payments, delayed release of funds, and in some cases losing retention money entirely due to upstream insolvencies. The government has indicated


that further consultation will take place on how the ban will be implemented, including transition periods and ensuring a clear and robust defi nition of retentions to prevent their reintroduction in other forms. Legislation is expected to follow when parliamentary time allows, although implementation is likely to take up to two years.


Mental health support


Trade Direct Insurance has launched a mental health and wellbeing service for tradespeople, in response to ongoing challenges across the industry. Research from the firm shows nearly seven in ten (69%) tradespeople experience mental health issues, with over a third (34%) attributing this at least partly to their work. New and existing Zurich


Tradesman Policy holders can access Zurich Support Services at no extra cost. The service includes confidential counselling (five sessions per year), 24/7 emotional support for issues such as stress, anxiety, depression and bereavement, as well as legal, financial and work- life balance support, including childcare, elder care and day-to- day assistance.


As part of wider efforts to


raise awareness, Trade Direct Insurance has also supported community initiatives with Tradie Events, including charity football matches designed to bring tradespeople together and encourage open conversations around mental health. Patricia Gardiner, sales & marketing director at Trade Direct Insurance, says: “Tradespeople face a range of pressures, and many feel they have to push through stress. Access to the right support can make a meaningful difference in managing both work and personal challenges.” ◼ phamnews.co.uk/426/28


further 30% of respondents said the risk of tool theft discourages new entrants to the trade. Simply Business claims data


show that theft methods are changing. Whole-van theft has dropped 98% since 2023, due to improved immobilisers and vehicle tracking, but break-ins have become more common. Much of the property damage comes from ‘peel and steal’ attacks, where van doors are forced open and tools are taken. Early 2026 data indicates this type of targeted break-in is now the


most common cause of tool theft claims. “While it is encouraging to see


whole-van theft decrease, tool theft continues to be a signifi cant concern for tradespeople across the UK,” says Julie Fisher, UK CEO of Simply Business. “And for the 300,000 tradespeople we protect, their tools are more than just equipment – they are their livelihood. This crime doesn’t just result in a loss of kit, but a loss of precious time and income, testing the mettle of even the most resilient small business owners.”


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