Payment practices reporting – updated guidance

The Department for Business and Trade has updated its guidance on the requirement for large UK companies and LLPs to report on their payment practices, policies and performance.

Under the payment practices reporting regime, which was introduced in 2017 by the Reporting on Payment Practices and Performance Regulations 2017 and the Limited Liability Partnerships (Reporting on Payment Practices and Performance) Regulations 2017, large UK companies and LLPs have to produce a report on their invoice payment practices every six months and submit the report to a government-hosted website for publication.

The guidance contains detail on who needs to report, what needs to be reported and where the information needs to be reported, as well as a set of frequently asked questions. The main changes to the guidance reflect the changes in the underlying legislation made by The Reporting on Payment Practices and Performance (Amendment) Regulations 2025 (the Amending Regulations) which extend and strengthen the regime for reporting on payment practices in relation to "qualifying construction contracts":

• the Amending Regulations came into force on 1 March 2025 and the new requirements apply in relation to financial years beginning on or after 1 April 2025;
• "construction contract" is very broadly defined in the Amending Regulations; and 
• the updated guidance includes worked examples of how to calculate the amount of retention withheld under qualifying construction contracts.

For more detail on the payment practices reporting regime more generally, see our snapshot here.