The duty to report on payment practices – April 2017Print publication
We have reported previously on new regulations which oblige large companies (or LLPs) to publish a report on their payment practices, policies and performance. A “large” company for these purposes is one that satisfies two of the following criteria:
- an annual turnover over £36 million
- a balance sheet total over £18 million
- on average, more than 250.
The new rules come into force on 6 April 2017 and apply to financial years starting on or after that date.
From that date, qualifying large companies (and LLPs) will have to publish and update, every six months, information relating to their payment practices and policies for business-to-business contracts under which they are supplied with goods, services or intangible assets and explain how they have performed in relation to those practices and policies. Non-compliance can result in unlimited fines.
If you are caught by these regulations and need help with how to comply, please do not hesitate to contact the writer.