This law matters directly to larger companies and indirectly to small suppliers. If your business is in scope, reporting needs director-level ownership. If your business supplies larger customers, payment practice reports can help assess slow-payment risk before agreeing terms.
Main laws
United Kingdom Regulation
Reporting on Payment Practices and Performance Regulations 2017
These Regulations require qualifying UK companies to report information about payment practices and supplier payment performance.
In forceUnited KingdomPlain-English guide4 practical checks
Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.
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Quick read
- This law matters directly to larger companies and indirectly to small suppliers.
- If your business is in scope, reporting needs director-level ownership.
Likely relevant if
- Large companies meeting reporting thresholds
- Finance teams approving supplier payment data
- Small suppliers checking customer payment behaviour
Check first
- Check whether the company meets the reporting thresholds
- Publish required payment information within the reporting window
- Have the information approved by the correct person
What this means in practice
Key points
- Payment reporting is a governance issue as well as a finance task.
- Small suppliers can use published data during customer risk checks.
- Late payment habits can become a reputational and tendering problem.
When this law usually matters
Most businesses do not need to memorise the whole law. The useful starting point is to know when it is likely to affect a contract, customer journey, employee process, data flow or company decision.
Key points
- Large companies meeting reporting thresholds
- Finance teams approving supplier payment data
- Small suppliers checking customer payment behaviour
- Businesses negotiating payment terms with enterprise customers
What to check first
Sense check
- Check whether the company meets the reporting thresholds
- Publish required payment information within the reporting window
- Have the information approved by the correct person
- Keep supplier payment data accurate and explainable
Documents and workflows to review
Key points
- Supplier payment data
- Finance approval process
- Published payment reports
- Supplier terms
- Credit control policy