The government has published proposals to introduce tougher measures to reduce payment times for SMEs’ invoices in its imminent Prompt Payment and Cash Flow Review. These follow the recent announcement of a similar initiative in the EU.
Suggested measures include:
- extending the requirement for large businesses to report on their payment procedures and include information about invoice values, late payment and disputed invoices;
- extending the powers of the Small Business Commissioner so they can investigate and report on cases based on information provided anonymously;
- beefing up the Prompt Payment Code under which businesses can promote their commitment to paying suppliers and business partners promptly, in accordance with their payment terms;
- providing more help and advice for small businesses on negotiating payment terms and use of technology for quicker payment and better cash flow, including by widening the scope of existing sources of help and training.
Operative date
- Now
Recommendation
- UK businesses should check out the proposals on the GOV.UK website and monitor their progress as they develop.
This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.
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