If you are a limited company or a limited liability partnership having £36 million annual turnover, £10 million balance sheet total and/or 250 employees, you have a duty to report on your payment practices, policies and performance on a half-yearly basis.
The aim is to tackle late payments, which are a key issue for businesses, especially smaller businesses, adversely affecting their cash flow and jeopardising their ability to trade.
Businesses must prepare and publish information about their payment practices and performance in relation to contracts which satisfy all of the following:
It is between two or more businesses
It is sufficiently linked to the UK
It is for goods, services or intangible property, including intellectual property
It is not for financial services
The report must be published on a web-based service provided by the government within 30 days of the end of the reporting period and be approved by a named company director or, for LLPs, a designated member.
If you have any more questions about payment practices, please contact us today.