A look at the likely changes to duty to requirements under new legislation
What will large and small businesses be required to consider under any duty to report requirements introduced in secondary legislation as part of the Small Business, Enterprise and Employment Act?
What is clear is that late payment has been identified as an issue that needs to be tackled.
In addition to the duty to report requirements, the Prompt Payment Code has been strengthened, with the creation of an Advisory Board and Code Compliance Board to rule on challenges raised against signatories’ payment behaviour that is detrimental to the supply chain.
In May’s Accounting and Business (p 55) the Prompt Payment Code changes and the timing of the changes were highlighted.
Any duty to report requirements are likely to draw on the code. We may see large companies reporting the following twice yearly within their reported numbers, and possibly also to a separate web portal that will be available for public access:
Smaller organisations that are signatories of the Prompt Payment Code are likely to have to report annually on the following:
ACCA and the Chartered Institute of Credit Management are working together to provide a suite of guidance for businesses.