Payments Archives

FIS CEO responds to major Project Bank Account judgment

by Clair Mooney | 19 Jun, 2026 | Main News Feed, Payments

FIS Chief Executive Iain McIlwee has been quoted in a recent Construction News report examining a significant court ruling that could allow administrators to recover fees from funds held in a project bank account. The case raises important questions about the protection of ringfenced payments and the effectiveness of Project Bank Accounts in safeguarding supply chain funds following insolvency events.

The article continues the industry’s ongoing debate around payment security and insolvency reform, with FIS remaining at the forefront of discussions on protecting specialist contractors and suppliers.

Read the full article in Construction News here.

FIS CEO hits out at supply chain abuse in Property Week

by Clair Mooney | 9 Jun, 2026 | Main News Feed, Payments

FIS Chief Executive Iain McIlwee has been featured in a recent Property Week article examining the challenges facing the UK housebuilding market and the pressures being felt across construction supply chains.

The article, published on 29 May, explored how major housebuilders, including Vistry, are responding to rising material and labour costs, tighter cash positions and wider market uncertainty. Within this context, Iain highlighted the impact that project delays and slower build rates can have on specialist contractors and suppliers further down the supply chain.

Risk transfer and inflation pressures

Commenting on the situation, Iain warned that delaying construction projects in an inflationary environment can shift financial risk onto the supply chain. He noted that contractors may face rising costs without the ability to recover those increases through existing contracts or payment arrangements.

The article also referenced concerns around payment performance in the housebuilding sector and the wider challenge of maintaining continuity of work for businesses involved in modern methods of construction (MMC) and specialist fit-out activities.

FIS continues to champion supply chain resilience

Iain’s contribution reflects FIS’s ongoing work to highlight the importance of:

Fair and timely payment practices
Balanced risk allocation across contracts
Sustainable procurement and delivery models
Protecting the long-term resilience of the finishes and interiors supply chain

As the construction market continues to navigate economic and geopolitical uncertainty, FIS remains committed to ensuring that the voice of the specialist supply chain is heard in national industry discussions.

Read the original Property Week article

The full analysis, “Land assets offer Vistry a lifeline in the stormy housebuilding market”, was published by Property Week on 29 May 2026 and is available to Property Week subscribers to read at https://www.propertyweek.com/analysis/land-assets-offer-vistry-a-lifeline-in-the-stormy-housebuilding-market

Making Tax Digital for Income Tax: What It Means for the Finishes and Interiors Sector

by Oscar Venus | 16 Oct, 2025 | Payments

From 6 April 2026, HMRC’s new Making Tax Digital for Income Tax service will come into effect, marking a major change in how self-employed individuals, including many working within the finishes and interiors sector, manage their tax.

The move is part of HMRC’s plan to modernise the tax system and reduce errors. It will be phased in over the next three years, starting with those earning over £50,000.

Under the new system, self-employed individuals will be required to:
Use HMRC-recognised software to record income and expenses
Submit quarterly updates to HMRC, helping to estimate tax bills throughout the year
Pay a single annual tax bill by 31 January

Those affected will need to check their eligibility and register in advance, as HMRC will not automatically enrol individuals in the new system.

FIS encourages members and sole traders within the sector to prepare early and review the HMRC guidance and FAQs to understand how the changes may affect them.

Government cracks down on late payment

by Clair Mooney | 2 Oct, 2025 | Payments

From 1 October 2025, companies bidding for central Government contracts over £5 million per year must now demonstrate that they pay invoices within an average of 45 days, down from 55 days. They must also continue to pay at least 95% of invoices within 60 days (90% if an action plan is provided) otherwise they will be excluded from bidding.

The guidance to PPN 018 confirms that companies must meet both of these metrics in at least one of their two previous six-month reporting periods under the Reporting on Payment Practices and Performance Regulations, although any companies that have failed to do so may submit data that has not yet been reported for the previous three or more months. Build UK’s payment performance table shows the results for more than 130 of the industry’s largest companies, and all Build UK tier one contractor members meet the new requirement to pay invoices within an average of 45 days.

The Government is consulting on further measures to tackle late payments, and we are encouraging all FIS members to have their say. The deadline for response is Thursday 23 October.

On the 9 September, FIS hosted a meeting with the Department for Business and Trade to discuss the key elements of the this consultation – you can see the full session here..FIS will be responding, but members are encouraged to feed their views into this consultation here.

Construction Payment Consultation Meeting

by Clair Mooney | 26 Sep, 2025 | Contractual and Legal, Payments

On the 9 September, FIS hosted a meeting with the Department for Business and Trade to discuss the key elements of the the government’s consultation on late payments and retentions in the construction sector that was launched on 31 July.

FIS CEO, Iain McIlwee opened the meeting explaining that this is a once in a generational opportunity to get genuine legislative support from government as opposed to weakly enforced guidance. The consultation proposes nine measures to tackle late payments, including a 60-day maximum payment term, mandatory statutory interest, and a ban or protection mechanism for retention clauses.

The aim is to legislate to improve cash flow, reduce disputes and ensure fair payment practices.

Two main proposals for retentions were debated: a statutory ban on retention clauses and a protection scheme requiring retentions to be protected in a separate bank account or insured.

In this discussion it was highlighted that whilst the ban is attractive in principle, concerns were raised about retentions being replaced by expensive bonds and legal loopholes.

The digitalisation of trust accounts combined with automatic release on clearly defined dates associated with completion of works would potentially offer a more cost effective and practical solution. It was felt that this approach would also encourage clients to consider why they hold retention and how to manage quality and remove those companies that may be holding retention purely to retain working capital and seeking to profit from complexity in the current system

You can see the full session here.

FIS will be responding, but members are encouraged to feed their views into this consultation here

CIJC Working Rule Agreement Updated with New Pay Rates

by Oscar Venus | 22 Aug, 2025 | Payments

The Construction Industry Joint Council (CIJC) Working Rule Agreement (WRA) has been updated to reflect the latest Promulgation Notice, which sets out the minimum pay rates effective from 30 June 2025.

The WRA provides a framework for pay and conditions across the construction industry and is widely recognised as an important reference point for employers and employees alike.

Members can download a free PDF version of the updated WRA and purchase hard copies directly from the CIP website