Late payment reporting guidance launched for large businesses
06 February 2017
From April 2017, large companies and limited liability partnerships (LLPs) will have to publically report twice a year on their payment practices and performance, including the average time taken to pay supplier invoices.
Draft regulations have been laid in parliament will make large businesses publish details on the time taken to pay their suppliers to shine a light on bad practice. Latest figures show SMEs are owed £26.3 billion in overdue payments.
Failure to report will be a criminal offence.
Guidance has been published which will help large businesses and limited liability partnerships prepare for these measures coming into force in April 2017.
The changes are part of a package to shine a spotlight on bad payment practice and lead to improved standards. This includes the appointment of the Small Business Commissioner to support small businesses in resolving payment disputes, with the Commissioner’s office expected to be up and running later in the year.
Recent findings from the payment processor Bacs report that nearly half of the UK’s small-to-medium sized businesses experience late payment, with £26.3 billion owed to them in total. The regulations laid in Parliament aim to tackle this by increasing transparency and helping small businesses make informed decisions about who they do business with.
The modern industrial strategy green paper sets out a plan to improve living standards and economic growth by increasing productivity and driving growth across the whole country. The government is encouraging businesses of all sizes and anyone with an interest to respond.