On 20 March 2015, the BIS announced plans to implement new reporting requirements for large companies in order to solve the "significant problem" of late payment to suppliers, etc. which currently stands at £41.5 billion. It noted that small business takes the majority of the burden, and large organisations should lead the way in improving the "corporate culture" in terms of fair payment practices.
BIS stated under the new rules, large businesses would be required to disclose their payment terms in addition to their:
- average time taken to pay;
- proportion of invoices paid beyond agreed terms;
- proportion of invoices paid in 30 days or less, between 31–60 days and beyond 60 days; and
- any late payment interest owed or paid.
The press release can be found here: https://www.gov.uk/government/news/hancock-large-firms-must-publish-payment-practices.
The proposed format for reporting payment practices is available here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/415028/bis-prompt-payment-implementing-the-dutyon-large-companies-to-report-on-payment-practices-and-policies.pdf.
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