Government Reveals Regulations For Late Payment Reporting Ahead of April Launch
From April, companies will have to publically report on their payment practices - including the average time it takes to pay supplier invoices
The government has revealed new regulations to be induced for late payment reporting ahead of its April launch.
Published by small business minister Margot James, the announcement has confirmed that from April 2017 large companies will have to publically report twice a year on their payment practices – including and the average time it takes them to pay supplier invoices.
Companies who fail to adhere to the new regulation could be criminally prosecuted, and it’s hoped the new measures will help “shine a spotlight on bad payment practice and lead to improved standards.”
Just last December it was revealed that just 51% of all small businesses are paid on time, with just 24% of all invoices settled within three days of being issued.
James said: “The UK is home to a record five and a half million small businesses and the industrial strategy will help address many of the challenges they face getting finance and scaling up.
“It’s completely unacceptable that small and medium-sized businesses are owed £26.3bn in late payments, which hampers their ability to grow and has no place in an economy that works for all.
“Large businesses have an important role to play and the guidance published today will help them fulfil their responsibilities and improve payment practices across the board.”
Struggling with late payments? Here’s a guide on how to get what you’re owed.