NEW PROPOSALS TO TACKLE LATE PAYMENT
January 12 2015.


The government is proposing to force large and listed companies to publish detailed information about their payment practices and performance.


The changes will, the government reckons, make it easier for small businesses to compare the role models with the less reputable. Specifically, the average payment time; the proportion of invoices paid beyond terms; and the proportion of invoices paid within 30 days, over 30 days, over 60 days and over 120 days.

The new reporting requirement has been developed in response to feedback from an earlier consultation, where a clear majority supported increased transparency. The new proposals show how the government intends to use the prompt payment power in the Small Business, Enterprise and Employment Bill which is currently going through parliament. Reporting on a quarterly basis will be mandatory for all large and quoted companies.

A consultation is asking for views on the proposals that will also see companies disclosing additional narrative information on payment practices, publishing the information on their website, and facing fines for breach of the requirement.

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For further Business Digest stories see the January/February issue of Motorcycle Trader - landing on your doormat this week.