Reporting rules unveiled for large UK companies
Large companies will be required to publish details on how quickly they pay their suppliers, under draft regulations released by Small Business Minister Margot James.
Coming into force from April 2017, this ‘duty to report’ will require large companies and limited liability partnerships (LLPs) to publicly report twice yearly on their payment practices and performance, including the average time taken to pay supplier invoices.
This will put a spotlight on bad practice and lead to improved standards.
As of June 2015, the overall level of late payment owed to small and medium sized businesses was reported as £26.8 billion. A recent survey from the Federation of Small Businesses said that, on average, 30% of payments are received late.
Draft measures announced today aim to tackle this problem by increasing transparency and helping small businesses make informed decisions about who they do business with.
Government will publish guidance on how to comply with the duty to report early next year, to help large businesses prepare for the new reporting requirements. ■