Payment practices and performance reporting: what are your obligations?

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.

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Payment practices reporting