Catagory / Prompt Payment

The government has at last set out measures to increase transparency of payment practices to support small firms. Clear legal sanction for non-compliance is now needed.

Large companies will be required to publish details on how quickly they pay their suppliers, under draft regulations released on 2 December 2016 by Small Business Minister Margot James. This is part of a package of measures to tackle late payment, which will also include the appointment of a Small Business Commissioner From April 2017 […]

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Stop late payments, save 50,000 small businesses…

This is the call from the Federation of Small Businesses (FSB), which has found that existing policy interventions have had no discernible effect on tackling problems around the UK’s poor payment culture in the last 5 years. Small businesses report that, on average, 30 per cent of payments are typically late compared with 28 per […]

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Construction supply chain payment charter published; it’s now time for the retail sector to follow suit and introduce their own charter for prompt payment…

  Last month the government’s Construction Leadership Council published a new payment charter for the construction supply chain. Signatories to the new Construction Supply Chain Payment Charter (CSCPC) will ensure that payments are made to their supply chain not more than 45 calendar days from the end of the calendar month in which the work […]

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Waitrose announces 7 day payment terms for SMEs…

In January 2016, the Grocery Adjudicator, Christine Tacon, hauled Tesco over the coals and ordered it to introduce significant changes to practices and systems after finding Britain’s largest supermarket seriously breached a legally-binding Groceries Supply Code of Practice (the Code). Tesco Chief Executive Dave Lewis had  earlier announced in October 2015 that smaller suppliers, who deliver up […]

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Late payment – clouds gather…

Market Invoice and now cloud accounting software provider FreeAgent has joined a chorus of complaints in finding typical UK micro-businesses write off nearly £2,000 in unpaid invoices each year. With 5m micro-businesses in the UK, this equates to a total of over £9bn written off in unpaid invoices last year. Based on invoices dated between […]

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Late payment “the damaging culture for UK business”

In a wide ranging report from Market Invoice, searching through its database of 30,000 invoices over 5 years, the proportion of invoices paid late by debtors is shown to have risen steadily from 45% in 2013 to over 60% last year. This contrasts markedly in Europe (excluding the UK), which shows almost the exact opposite […]

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New tax law for telecoms – another take from SMEs as VAT cash flow benefits transfer to big business…

In a largely unpublicised change, HM Revenue and Customs (HMRC) introduced “emergency” legislation on 1 February 2016, purportedly to combat the threat of VAT fraud in the wholesale telecommunication sector. The HMRC policy paper was published on 11 January 2016, allowing very little time for affected businesses to plan the introduction, although some dispensation has […]

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Tesco – Grocery Adjudicator’s findings suggest that tough prompt payment regulation is required across all industry sectors…

Back in October last year, Tesco Chief Executive Dave Lewis announced new payment policies, which will see smaller suppliers, who deliver up to £100,000 worth of products in a year, paid within 14 days. Medium-sized suppliers who deliver up to £10 million in product value per year, will have their accounts settled five days quicker […]

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Federation of Small Business Launches Prompt Payment Questionnaire…

Has your business been affected by customers using poor payment practices with you? Research by the FSB in 2015 revealed that almost one in five small businesses had been subject to some form of poor payment tactics. They are looking for small businesses to tell their stories to be used by local MPs in a […]

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Prompt payments to SMEs – Tesco, from poacher to gamekeeper…?

Paying small businesses promptly has been a case of smoke and mirrors for a long time, but there were signs from Tesco this month that perhaps the smog is beginning to clear a little. The groceries code adjudicator Christine Tacon oversees the relationships between the UK’s 10 biggest supermarkets and their suppliers. Earlier this year […]

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