0191 257 0355

71 Howard Street, North Shields
Tyne & Wear, NE30 1AF


The end of late payments by large organisations?

Source: Department for Business Enterprise and Regulatory Reform | | 10/10/2018

The government has been trying to combat the widespread issue of large businesses abusing their position by making late payments to small businesses. This initiative has included the launch of the voluntary Prompt Payment Code (PPC) in April 2017 where over 2,000 signatories have committed to the fair and equal treatment of payments to suppliers including to smaller businesses. The PPC and other measures have helped reduce the amount owed to smaller businesses in late payments.

However, this remains an important issue that needs to be tackled as nearly a quarter of UK businesses report that late payments are a threat to their survival. In fact, the Federation of Small Businesses suggests that tackling the issue of late payments could add £2.5bn to the UK economy and keep an extra 50,000 businesses open each year. The Small Business Minister Kelly Tolhurst has announced new proposals that will examine what other measures can be put in place to tackle unfair payment practices.

This includes:

  • a call for evidence to consider the best way company boards can put in place responsible payment practices throughout their supply chain, for example giving a non-executive director specific responsibilities for the company's prompt payment performance; and
  • promoting innovative technologies, such as the latest accounting software, to help small firms manage their payments processes, and empowering trade bodies to highlight the best and worst practices in payment behaviour.

Small Business Minister Kelly Tolhurst said:

'Our 5.7 million small businesses are the backbone of our economy, and ensuring we remain one of the best places in Europe to start and grow a small business is a key part of our modern Industrial Strategy. Over the past 5 years the amount owed to businesses in late payments has halved, but we will go further to make sure all of our small businesses are treated fairly. Today’s new call for evidence will help us identify the most effective way possible to tackle this issue once and for all and ensure small businesses are on a level playing field with their larger counterparts.'

 

Latest News

  • Child Benefit penalties under review

    06/11/2018 - More...

    The High Income Child Benefit Charge (HICBC) came into force in January 2013. It applies to taxpayers whose income exceeds £50,000 in a tax year and who are in receipt of child

  • VAT reverse charge construction industry

    06/11/2018 - More...

    A change to the VAT rules first announced at Budget 2018 will come into effect from 1 October 2019. This change will make the supply of construction services between construction

  • Business rates support for the High Street

    06/11/2018 - More...

    The Chancellor announced a number of measures to help many failing high streets up and down the country, as they face a real threat to their existence as footfall continues to be

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

Copyright © 2018 - Read Milburn