April 03 2017
The government has published the Reporting on Payment Practices and Performance Regulations 2017. The regulations come into force on 6 April 2017 and, subject to certain exceptions, the duty to report will apply in relation to financial years beginning on or after 6 April 2017.
The regulations only apply to "qualifying" companies incorporated within the UK. Whether a company is a qualifying company depends on whether it is a parent company or not.
As regards a non-parent company, if it exceeds any two (or all three) of the thresholds set out below, it will be a qualifying company. As regards a parent company, it faces a two stage test before it is considered a qualifying company:
The balance sheet thresholds are:
The Regulations require qualifying companies to report on relevant contracts, broadly:
The report must be published on a web-based service to be provided by the government (available from April 2017) and suppliers, and other interested parties, will be able to view the information as soon as it has been published.
Qualifying companies will need to report on their standard payment terms, including:
Breach of the reporting requirements is a criminal offence.
For further information on this topic please contact Hannah Kendrick at Squire Patton Boggs by telephone (+44 161 830 5000) or email (firstname.lastname@example.org). The Squire Patton Boggs website can be accessed at www.squirepattonboggs.com.
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