Late payment reporting guidance published
13 February 2017
The December 2016 edition of Business Edge featured an article about new reporting requirements on payment practices and performance, which apply to large companies and large limited liability partnerships from April 2017. The Department for Business, Energy and Industrial Strategy has now issued guidance that is aimed at helping businesses prepare for these new measures. Among the topics covered in the guidance are:
- Who needs to report?
- Which businesses?
- The size criteria for the reporting requirement
- Businesses operating outside of the UK
- Parent companies and parent LLPs.
- What needs to be reported?
- The reporting requirement
- Which contracts should be reported on?
- The information required.
- Where does the information need to be reported?
- When does the information need to be reported and for what period?
The new requirements are part of a package on bad payment practice intended to 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 to make large businesses publish details on the time taken to pay their suppliers were laid in Parliament at the end of January.
Read the Guidance.
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