Payment practices reporting – updated guidance and announcement of new measures

The Government has published updated guidance* on the requirement for large UK companies and LLPs to report on their payment practices, policies and performance.

Entities within the scope of the payment practices reporting requirements must produce a report every six months on their payment practices and submit the report to a Government-hosted website for publication. The guidance provides detail on who needs to report, what needs to be reported and where the information needs to be reported and also includes a set of frequently asked questions.  

The Government has also announced a new package of measures to deal with late payments including:

• the launch of a new Fair Payment Code – with bronze, silver and gold standards – to replace the current Prompt Payment Code. Businesses which can prove that they have met good payment standards will be able to sign up to the new code from the autumn; 
• a consultation on the role of audit and audit committees in relation to payment practices;
• legislation "in the coming weeks" which will require large businesses to include payment reporting in their annual reports; and
• plans for stricter enforcement of the payment practices reporting regulations. 

*The guidance issued in September 2024 was deleted and replaced by updated guidance in October 2024 (see our blog post here). The updated guidance is available here.