The Government has published guidelines to help large businesses and LLPs prepare for when the new regulations come into force. Failure to report will be a criminal offence, reinforcing just how seriously the Government are taking the issue of late payments.
Margot James MP, Minister for Small Business, Consumers and Corporate Responsibility says: “This new reporting requirement for the UK’s largest companies and limited liability partnerships (LLPs) will shine a light on payment practices. It will increase transparency and make payment behaviour a reputational boardroom issue”.
“Unfair payment practices and unnecessary red tape hamper the ability [of small suppliers] to grow and have no place in an economy that works for all.”
The new reporting will help to increase transparency and challenge the late payment culture, as well as assist SMEs to make informed decisions about which large businesses they want to trade with, with a clear view of their payment practices and payment times.