The Reporting on Payment Practices and Performance (Amendment) Regulations 2025
Introduction
The Reporting on Payment Practices and Performance (Amendment) Regulations 2025 (the “Regulations”) are a set of regulations that amend the Reporting on Payment Practices and Performance Regulations 2013 (the “Principal Regulations”). The Principal Regulations require certain large businesses to report on their payment practices and performance. The Regulations amend the Principal Regulations in a number of ways, including:
- Extending the scope of the Principal Regulations to cover a wider range of businesses
- Requiring businesses to report on a wider range of payment practices
- Introducing new penalties for businesses that fail to comply with the Principal Regulations
Background
The Principal Regulations were introduced in 2013 to improve the transparency of payment practices in the UK. The Regulations were designed to help small businesses by making it easier for them to compare the payment practices of different businesses.
The Regulations require certain large businesses to publish a report on their payment practices and performance on an annual basis. The report must include information on:
- The average time taken to pay invoices
- The proportion of invoices paid within 30 days
- The proportion of invoices paid within 60 days
- The proportion of invoices paid within 90 days
The Amendments
The Regulations amend the Principal Regulations in a number of ways. The most significant amendments are:
- Extending the scope of the Principal Regulations to cover a wider range of businesses. The Principal Regulations currently apply to businesses with a turnover of £500 million or more. The Regulations extend the scope of the Principal Regulations to cover businesses with a turnover of £250 million or more.
- Requiring businesses to report on a wider range of payment practices. The Principal Regulations currently require businesses to report on their average time taken to pay invoices, the proportion of invoices paid within 30 days, the proportion of invoices paid within 60 days, and the proportion of invoices paid within 90 days. The Regulations require businesses to report on a wider range of payment practices, including:
- The proportion of invoices paid within 15 days
- The proportion of invoices paid late
- The amount of interest paid on late payments
- The number of disputes over payments
- Introducing new penalties for businesses that fail to comply with the Principal Regulations. The Principal Regulations currently provide for a maximum penalty of £5,000 for businesses that fail to comply with the Regulations. The Regulations introduce new penalties for businesses that fail to comply with the Principal Regulations, including:
- A maximum penalty of £10,000 for businesses that fail to publish their payment practices report on time
- A maximum penalty of £50,000 for businesses that provide false or misleading information in their payment practices report
Conclusion
The Regulations are a significant amendment to the Principal Regulations. The Regulations extend the scope of the Principal Regulations to cover a wider range of businesses, require businesses to report on a wider range of payment practices, and introduce new penalties for businesses that fail to comply with the Principal Regulations. The Regulations are designed to improve the transparency of payment practices in the UK and to help small businesses by making it easier for them to compare the payment practices of different businesses.
The Reporting on Payment Practices and Performance (Amendment) Regulations 2025
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