New Payment Reporting Requirements

The guidance to the Reporting on Payment Practices and Performance Regulations has been updated to include the new reporting requirements on value of invoices paid and disputed invoices, which come into force from 1 January 2025. As it stands, large businesses will need to report on:

• Value of invoices paid within 30 days, between 31 and 60 days, and over 60 days, as well as outside of the agreed terms. According to the guidance, this data should be expressed as ‘sums’, rather than percentages as is the case for number of invoices paid, and Build UK is working with the Department for Business and Trade to ensure that the data is reported consistently and provides the transparency the supply chain is looking for.
• Disputed invoices which the guidance states should be calculated by taking the number of invoices paid outside of the agreed terms and working out what percentage of these were due to a dispute.

New metrics on retentions are due to come into force from 1 April 2025 and the guidance to the regulations should be updated to reflect these requirements in due course.