Tuesday 11th April, 2017
The Reporting on Payment Practices and Performance Regulations 2017 came into force on 6th April 2017. The new reporting rules mean that large companies and limited liability partnerships (LLPs) will have to publicly report twice a year on their payment practices and performance, including the average time taken to pay supplier invoices.
All big businesses are obliged to post their payment records on a dedicated government website or face non-compliance fines. The website will allow suppliers to compare and contrast the payment performance of customers within their own industries.
In an article by Small Business Minister Margot James on late payment, the requirement will apply to businesses that exceeded two of the following criteria in the previous two years:
• £36 million turnover
• £18 million balance sheet total
• 250 employees
Speaking on the BBC’s You and Yours, Philip King, Chief Executive of the Chartered Institute of Credit Management (CICM), says that it’s data that all business should have to hand: “Most businesses will have this data in some form or another and should be monitoring how they are treating their supply chain anyway, because if they are not, then they’re not doing their job.”
In January the government also published guidance to help large businesses report on how quickly they pay their suppliers.