Glossary · Legal and regulation
Payment practices reporting (UK)
UK payment practices reporting requires large companies and LLPs to publish, every six months, how quickly they pay their suppliers.
Under the Reporting on Payment Practices and Performance Regulations 2017, large UK companies and LLPs must report twice a year on how they pay suppliers. The reports are published on a public government service.
Each report includes the average time taken to pay invoices, the share paid within 30 days, between 31 and 60 days and later than 60 days, the share not paid within agreed terms, and the company’s standard payment terms.
For suppliers, the reports are free intelligence. Before agreeing terms with a large UK customer, you can check how long it really takes to pay — and refer to its published record when invoices go overdue.
Example
Before signing with a large UK retailer, an agency checks its payment report: an average of 52 days to pay, with 30% of invoices paid late. It negotiates monthly billing and plans its cash flow around the 52 days.