Tighter payment rules to small firms come into force

Reforms to the Prompt Payment Code covering small businesses come into force today requiring payment times to be cut from 60 days to 30 days.

image for illustration purposes only

The Construction Enquirer writes:

Under the tightening of the rules, firms will need to demonstrate they have paid 95% of invoices from businesses with fewer than 50 employees within 30 days…. For larger firms, clients or main contractors are still required to pay 95% of invoices within 60 days, with the public sector held to 30 days…

Firms are also now required formally to acknowledge as a condition of signing the Code that suppliers can charge interest on late invoices…

Read more….

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