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.
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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…
