New Duty To Report On Payment Practices

Author:Ms Lucy Fergusson and Sarah Debney
Profession:Linklaters
 
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The Department for Business, Energy and Industrial Strategy has published the Government's response to its consultation on a "Duty to Report on Payment Practices and Policies".

This sets out how the duty of large businesses to report on payment practices under s.3 of the Small Business, Enterprise and Employment Act 2015 is to be implemented. The response includes the draft regulations.

The new rules will require large companies and large limited liability partnerships to publish information about their payment practices and performance twice a year on a government web service. For these purposes this means companies that exceed two or all of the following categories:

over £36m turnover; over £18m balance sheet total; over 250 employees. The report must include the following:

narrative descriptions of the organisation's payment terms and process for dispute resolution regarding payment; statistics on, amongst other things, average time taken to pay invoices...

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