Payment transparency reporting for large business goes online

Under new rules to force companies to pay invoices more quickly and speed up payment to suppliers, the government has launched an online reporting service for large businesses who have to to publish mandatory business payment practices reports twice a year online

The new rules set out a statutory reporting duty for companies and limited liability partnerships (LLPs) to report their payment performance twice a year, with the information available on an online register for public review.

The Department for Business, Energy and Industrial Strategy defines a large business as a company or limited liability partnership that has at least two of the following: £36m in turnover, £18m on its balance sheet and/or 250 employees.

The information for the reporting requirement should be prepared on an individual company or individual LLP basis, not at a group level.

If a new company or LLP with a new registration is created as a result of a merger or takeover, then the new company or LLP will be excluded from reporting in its first financial year.

Reporting deadlines for first reports

Financial year beginning

First reporting period

First report published online

01-Jan

1 Jan-30 Jun 2018

On or before 30 Jul 2018

01-Apr

1 Apr-30 Sep 2018

On or before 30 Oct 2018

05-Apr

5 Apr-4 Oct 2018

On or before 30 Nov 2018

06-Apr

6 Apr-5Oct 2017

On or before 4 Nov 2017

After 06 Apr

First six months of  business' 2017-18 FY

Within 30 days starting on day after  end of  business’ first reporting period

 

If a business merges and continues to use the same company registration number it will have to report without a break, under the enlarged entity or under different ownership.

Businesses incorporated outside of the UK, including overseas companies registered under the Companies Act but not formed under the Companies Act, are not required to report.

Businesses in scope of the reporting requirement must prepare and publish information about their payment practices and performance in relation to qualifying contracts for each reporting period in the financial year.

A qualifying contract is a contract which satisfies all of the following:

i.                     It is between two (or more) businesses

ii.                   It is sufficiently linked to the UK;

iii.                  It is for goods, services or intangible property, including intellectual property

iv.                 It is not for financial services.

The information for each reporting period must reflect the policies and practices which have applied during that period, and the business’ performance for that period.

A business needs to report on what proportion of the payments they made within the reporting period, under qualifying contracts, were paid:

i. between day 1 and day 30 (including day 30)

ii. between day 31 and day 60 (including days 31 and 60)

iii. on or after day 61.

The regulations were made under section 3 of the Small Business, Enterprise and Employment Act 2015 (and, for limited liability partnerships (LLPs), the Limited Liability Partnerships Act 2000), which legislate for mandatory payment reporting for the UK’s largest companies and LLPs to report on a half-yearly basis on their payment practices, policies and performance for financial years beginning on or after 6 April 2017.

Reports can now be filed online and will be required for all affected parties from 11 October 2017 (depending on financial year dates) and must be submitted twice a year.

The payment reporting per company and LLP can be downloaded in Excel once available.

Further information

BEIS Guidance to reporting on payment practices and performance

Calculate reporting periods and deadlines

Click here to search for published payment practice reports

Financial year beginning

First reporting period

First report published online

01-Jan

1 Jan-30 Jun 2018

On or before 30 Jul 2018

01-Apr

1 Apr-30 Sep 2018

On or before 30 Oct 2018

05-Apr

5 Apr-4 Oct 2018

On or before 30 Nov 2018

06-Apr

6 Apr-5Oct 2017

On or before 4 Nov 2017

After 06 Apr

First six months of  business' 2017-18 FY

Within 30 days starting on day after  end of  business’ first reporting period

 

 

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