Connect with us

Hi, what are you looking for?

Investing

Big firms to pay small companies within 30 days

Invoice

The UK will strengthen its Prompt Payment Code (PPC) to push larger firms to pay small businesses quickly.

Under the changes, large companies that have signed up to the code must pay small businesses within 30 days instead of 60.

The government estimates there are £23.4bn worth of outstanding late invoices.

The issue is more prevalent than ever due to the impact of the pandemic.

The small business minister Paul Scully said the changes would help the UK’s economic recovery.

“Our incredible small businesses will be vital to our recovery from the coronavirus pandemic, supporting millions of livelihoods across the UK,” he said, in a media release.

The voluntary code currently has more than 2,800 signatories, who are required to pay 95% of their invoices within 60 days or else be publicly struck off the code until they make substantial changes to their payment practices.

Under the changes, payments to firms with fewer than 50 employees must be made within 30 days, but the 60-day deadline will remain for larger companies.

Also, a company’s chief executive or finance director must personally sign onto the code, to ensure good payment practices are taken seriously at the highest level of the company.

The changes also allow suppliers to charge interest on late invoices and enable administrators to investigate breaches based on third party information.

The government will continue to publicise the names of signatories found in breach of the code.

“Late payment causes real hardship to small businesses, and the issue is more prevalent than ever due to the continued impact of the pandemic. Code signatories of all sizes demonstrate their commitment to ending the culture of late payment and helping to increase business confidence,” said Interim Small Business Commissioner Philip King.

According to the Federation of Small Businesses (FSB), about 50,000 businesses close every year due to late payments, damaging Britain’s prosperity and threatening jobs.

“Ending our pernicious poor payment culture for good over the coming months will be fundamental to turning our hopes of economic recovery into reality,” said FSB National Chairman Mike Cherry.

Read more:
Big firms to pay small companies within 30 days

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...

Economy

By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...

Economy

THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...

Economy

THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...

Investing

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.