Large companies’ duty to report on payment practice and performance
- Publish date: 16 May 2017
- Archived on: 16 May 2018
The payment performance requirements contained in the Small Business Enterprise & Employment Act came into force in April 2017. Large businesses will be required to report on the first six months’ payment performance on accounting periods commencing after 6 April 2017.
So a business with a 30 June year end would report on the period 1 July to 31 December 2017 by 31 January 2018.
By providing incentives for businesses to make invoice payments promptly, the measure is intended to reduce the costs incurred by suppliers in chasing late payment of invoices and covering cash-flow shortages with external finance.