CLLS Company Law Committee and Law Society's response to the Department for Business and Trade late payments consultation: Tackling Poor Payment Practices

In relation to the various thresholds used to determine which companies must comply with various reporting obligations, we would like to note it would be very helpful for companies to have simple tests that are easy to apply, and for the various different reporting requirements to use the same tests as far as practicable and where appropriate. Although the payment practices reporting regime uses the Companies Act 2006 thresholds, the thresholds in relation to other non-financial reporting obligations are not so aligned.

We feel that regular changes to The Reporting on Payment Practices and Performance Regulations 2017 and the payment practices regime more generally are unhelpful to businesses. It is therefore important that any changes will have a significant positive impact on the issue of late payments.