The new duty to report on payment practices, policies and performance has moved a step closer with publication of new, revised, draft regulations. April is the government target starting date for the regulations, which will require large UK companies and LLPs to publish details of their payment practices and performance, in relation to business contracts for goods, services or intangible assets, twice per financial year on a government web service. Director approval (or that of a designated person in an LLP) is required to ensure the accuracy of the information, which must be produced within 30 days of the end of the business’s reporting period (i.e. each six months of its financial year).
The information required includes, amongst other details:
• the organisation’s payment terms;
• its process for payment dispute resolution;
• the average time taken to pay invoices from invoice receipt;
• the percentage of invoices paid, within the reporting period, in 30 days or fewer, between 31 and 60 days, and over 60 days; and
• the proportion of invoices due within the reporting period but not paid within agreed terms.