Tuesday, January 19, 2021

Reforming the Prompt Payment code

Today the government has announced reforms to the Prompt Payment Code to crack down on delayed invoices owed to small businesses, providing them with further protections. 

  • Small businesses support millions of livelihoods across the UK and as with many businesses, many of them have been hit hard by the pandemic.
     
  • The government is overhauling and strengthening the Prompt Payment Code (PPC) to ensure that small businesses get paid on time by larger companies. Through these reforms, the time outlined in the current Code has been halved, meaning companies that have signed up to the PPC will have to pay small businesses within 30 days. Business owners, Finance Directors or CEOs will have to take personal responsibility in acknowledging that suppliers can charge interest on late invoices and that breaches will be investigated.
     
  • This will relieve some of the pressure on small business owners and will provide more assurance to our valued small businesses and further protections for the jobs and growth stemming from them.

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