To help tackle the culture that leaves small and medium sized businesses owed £26.3bn in late payments, the UK’s largest companies and limited liability partnerships will be required to report twice a year on their payment practices, policies and performance relating to suppliers for financial years beginning on or after 6 April under ‘The Reporting on Payment Practices and Performance Regulations 2017’ currently going through the parliamentary process.

The requirements apply to organisations that exceed at least two of three thresholds relating to annual turnover, balance sheet total and average number of employees. These will be periodically updated but are currently: £36m turnover; £18m balance sheet total; 250 employees.

‘Business payment practices and performance: reporting requirements’ links to new guidance produced by the Dept for Business, Energy and Industrial Strategy to explain in detail who is required to produce reports, what information the reports should cover and when the reports should be produced.

The guidance also explains how the government will provide a web service for businesses to publish their reports so suppliers, stakeholders and the general public have immediate access to them.

Some businesses will have to start submitting information from October 2017, although the majority will begin doing so from mid 2018.