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APRIL. 2021 | VOL. 16
Tougher measures To help tackle the problem, business owners, finance
to combat late payment directors or CEOs will be required to take personal
responsibility by signing the PPC, acknowledging that
The Government has announced an overhaul of suppliers can charge interest on late invoices on the
the Prompt Payment Code (PPC) to crack down PPC and that breaches will be investigated. Those
on delayed invoices due to small businesses. signed up will redouble their efforts to ensure
payments are made on time. Breaches will continue to
Companies that have signed up must pay small be publicised by the Government to encourage
businesses within 30 days – have the time compliance.
outlined in the current PPC.
The move comes ahead of the expected strengthening
of the Small Business Commissioner’s powers to
ensure larger companies pay their smaller partners on
time. New powers proposed in a recently closed
consultation include legally binding payment orders,
launching investigations and levying fines.
Despite almost 3,000 companies signing the Further information can be found at the
PPC, poor payment practices are rife, with many following websites:
payments delayed well beyond the current 60-
day target required for 95% of invoices.
Currently, £23.4 billion worth of late invoices are www.promptpaymentcode.org.uk
owed to firms across the UK, impacting www.smallbusinesscommissioner.gov.uk
businesses’ cash flow and survival.
