If your business provides services (consultancy, trades, design, repairs, professional advice) UK law sets the ground rules for what you must deliver and what your customers can expect. Two statutes do most of the work: the Consumer Rights Act 2015 (for services supplied to consumers) and the Supply of Goods and Services Act 1982 (for business-to-business services). Here are the most common questions answered in plain English (England & Wales).
What standard must my services meet?
For consumers, the Consumer Rights Act 2015 says a service must be carried out with reasonable care and skill; any information you give that the consumer relies on is binding; and, where the price or timescale was not fixed, the service must be for a reasonable price and within a reasonable time.
For business customers, the Supply of Goods and Services Act 1982 implies very similar terms, reasonable care and skill (s 13), a reasonable price where none is fixed (s 15), and a reasonable time (s 14).
What happens if the service falls short?
For consumers, if a service is not done with reasonable care and skill (or not as described), the consumer is entitled to repeat performance (have it put right) or, if that is impossible or not done in a reasonable time, a price reduction, up to a full refund in serious cases.
For business customers, falling short is a breach of contract, and the usual remedy is damages to put the customer in the position they would have been in had the service been performed properly.
Can I limit or exclude my liability?
Only within strict limits. You can never exclude liability for death or personal injury caused by negligence. Against consumers, you cannot exclude the core statutory rights, and other terms must be fair under the Consumer Rights Act 2015. In B2B contracts, exclusion clauses are tested for reasonableness under the Unfair Contract Terms Act 1977. Overreaching exclusion clauses are often unenforceable.
Do I need a written contract?
Not legally for most services (an oral contract can be binding) but a clear written contract is strongly advisable. It sets the scope, price, timescale and payment terms, reduces disputes, and lets you allocate risk sensibly. For consumers bought at a distance or off-premises, you must also give certain pre-contract information and tell them about the 14-day cancellation right.
When do I get paid, and what if a customer pays late?
Your contract should set payment terms. For business-to-business debts, the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim interest (8% above the Bank of England base rate) plus fixed compensation (£40/£70/£100 depending on the debt) if an invoice is paid late.
How are disputes resolved?
Most disputes settle through negotiation. Consider mediation before going to court, it is faster and cheaper, and courts expect parties to try it. If court is necessary, smaller claims go through the small claims track. Many sectors also have alternative dispute resolution (ADR) schemes, and you must tell consumers if an ADR scheme applies to you.
What about subcontractors and my own suppliers?
You remain responsible to your customer for the whole service even if you subcontract parts of it. Make sure your subcontracts pass down the same standards and that responsibilities (and insurance) are clear.
Key takeaways
- Services to consumers: Consumer Rights Act 2015, reasonable care and skill, binding information, reasonable price and time; remedies of repeat performance or price reduction.
- Services to businesses: Supply of Goods and Services Act 1982, similar implied terms; breach gives damages.
- You cannot exclude liability for death/personal injury from negligence; other exclusions must be fair/reasonable.
- Use a written contract, give consumers their pre-contract information, and use the Late Payment Act for overdue B2B invoices.
Sources
- Consumer Rights Act 2015 (services to consumers; remedies; unfair terms)
- Supply of Goods and Services Act 1982, ss 13–15 (B2B services)
- Unfair Contract Terms Act 1977 (reasonableness of exclusion clauses); Late Payment of Commercial Debts (Interest) Act 1998
- Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (pre-contract information; 14-day cancellation)
--- This article is general information about the law of England & Wales as at 2026, not legal advice. For advice on your circumstances, consult a qualified solicitor.