Large businesses to report on payment practices: updated guidance
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Late payment is a key issue for business, especially smaller businesses. Due to the introduction of the Payment Practices and Performance Regulations 2017 and the Limited Liability Partnerships Regulations 2017 there is now a duty on qualifying companies and limited liability partnerships (businesses) to publicly report twice a year on their payment practices, policies and performance for financial years starting on or after 6 April 2017.
Businesses are caught if, on their last 2 balance sheet dates, they exceeded 2 or all of the thresholds for qualifying as a medium sized company under the Companies Act 2006. The thresholds are £36 million turnover, £18 million balance sheet total and 250 employees. Businesses not caught can voluntarily report.
The Department for Business, Energy and Industrial Strategy (BEIS) has updated its webpage which provides guidance on the reporting requirements. This now states that businesses can publish their reports online. The guidance sets out which businesses need to report, what they need to report, where information needs to be reported (the web service) and the reporting period. Businesses can use the digital service to check if they need to publish a report, publish the report itself or search for a report. A contact address is also given for queries related to the reporting requirement or digital service.
Action points
- Consider if your business needs to report.
- If so, check the guidance to see what you need to report, how and by when.