26 October 2017
New regulations combating late payment practices have been introduced by the Small Business, Enterprise and Employment Act 2015. They impose a duty on large UK companies and LLPs to report on their payment practices, policies and performance in relation to qualifying contracts on a half yearly basis.
The regulations became effective from 6 April 2017, and affect businesses who exceed two of the following conditions on their last two balance sheet dates:
- £36 million annual turnover
- £18 million balance sheet total
- 250 employees
Companies with financial years beginning on or after 6 April 2017 need to report from October 2017.
Non-compliance is a criminal offence and every director or designated member of a LLP could be fined if the company fails to file the relevant information within the specified time period.
Contact us to find out if your business is required to report.