The FSB’s 2011 Survey reported that 73% of small businesses had been paid late in the previous year. Read more…
The British Chamber of Commerce 2012 survey found that 34% of respondents said that businesses with more than 50 employees were most likely to pay late. Read More…
The Government has published draft Regulations governing the Small Business Commissioner’s (SBC) complaint handling function which will go live on the 1 October 2017. The SBC has had its methodology for handling complaints from small businesses about payment by larger ones set out by the Department for Business, Energy & Industrial Strategy. The Government has also set out proposals to require large companies to publish information about their payment practices. This will be publicly available on a website, allowing anyone to see at a glance whether a particular company pays their invoices on time or not.
The reporting requirements only apply to medium and large businesses, those defined by the Companies Act as a medium sized company i.e. those with at least two of the following criteria:
- £36m annual turnover
- £18m balance sheet total
- At least 250 employees
Every qualifying company will have to provide the reporting information twice a year, within 30 days of the end of either the first half or the second half of the company financial year for payments made in that six month period. The reporting requirements start for financial years beginning on or after the 1st April 2017, meaning any company with a financial year 1st April – 31st March will have to make their first report in October 2017.