Summary
Large companies could be fined if they do not pay their suppliers on time. The government plans to limit the time companies have to pay invoices to 60 days, which may later become 45 days in five years. The proposals aim to support small businesses affected by late payments.
Key Facts
- Large companies might face fines for paying suppliers late.
- New plans suggest a maximum invoice period of 60 days, dropping to 45 days in five years.
- Around 1.5 million businesses are affected by late payments, with £26 billion owed at any time.
- The small business commissioner could get new powers to fine late-paying firms.
- Fines would be double the amount owed in late-payment interest.
- The change depends on available parliamentary time for new legislation.
- Companies with over 250 employees must already report payment times twice yearly.
- These measures aim to support small businesses with fewer resources.
