The Reporting on Payment Practices and Performance (Amendment) Regulations 2024 have been made and come into force on 5 April 2024. They extend and strengthen the regime for reporting on payment practices.
Under the 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 Amending Regulations have been made following the government's January 2023 consultation on the regime and its response to that consultation (see our blog post here).
The Amending Regulations extend the expiry date of the regime from 6 April 2024 to 6 April 2031 (with a review to take place by 6 April 2029).
They also introduce provisions requiring the reporting of:
- the total value of payments made within certain time frames (in addition to the existing requirement to report the percentage of such payments); and
- the percentage of invoices where payments are not made within agreed terms as a result of a dispute.
They also clarify the dates to be reported when supply chain finance is used.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
