New measures to ensure small businesses get paid on time

The government has announced a package of measures to ensure small businesses get paid on time.

The government has announced a package of measures to ensure small businesses get paid on time. Under the proposals large businesses could be fined for failing to pay smaller suppliers on time as part of a robust package of measures.

The measures include: 

  • proposed new powers for the Small Business Commissioner to tackle late payments through fines and binding payment plans
  • company boards to be held accountable for supply chain payment practices for first time
  • the introduction of a new fund to encourage businesses to use technology to simplify invoicing, payment and credit management.

The government has also announced that responsibility of the voluntary code of best practice,  the Prompt Payment Code, will be moved to the Small Business Commissioner.

Small Business Minister Kelly Tolhurst said:

'The vast majority of businesses pay their bills on time, with the amount owed in late payments halved over the last five years. But as a former small business owner, I know the huge impact a late payment can have on the ability of a small business to plan, invest and grow.'

'Small businesses are the backbone of our economy and through our modern Industrial Strategy we want to ensure the UK is the best place to start and grow a business. These measures will ensure that small businesses are given the support they need and ensure that they get paid quickly - ending the unacceptable culture of late payment.'

Internet link: GOV.UK news

Contact Us

T: 01604 718866
F: 01604 716880
E: info@phm-accountants.co.uk

Social

Home | Privacy | Site map | Contact us | Accessibility | Disclaimer | Help | Diversity Report

© 2021 Phipps Henson McAllister. All rights reserved.

powered by totalSOLUTION

We use cookies on this website, you can find more information about cookies here.

Phipps Henson McAllister are registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England & Wales.

Details about our audit registration can be viewed at www.auditregister.org.uk for the UK, under reference number EWC008449569.

This firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.