The duty to report on payment practicesPrint publication
We have reported previously on government proposals to 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 employees
The new rules were originally intended to come into force in April this year but have been delayed. The new Department for Business, Energy and Industrial Strategy has said that it expects the regulations to be laid before Parliament in the new year and to enter into force on 6 April 2017, applying 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.
We will provide an update when the regulations are published.