UK government review of reporting on payment practices
Government review of payment practices to be published by 6 April 2022.
The UK government is seeking views and evidence as part of its review of the current rules on reporting on payment practices, which (under the rules) it must publish before 6 April 2022 (the Reporting on Payment Practices and Performance Regulations 2017 (Regulations).
The Regulations require certain large UK companies and LLPs to report on their payment practices, policies and performance in relation to certain specified contracts every six months.
Review
The review will:
- look at the objectives that were intended to be achieved by the Regulations;
- assess to what extent those objectives have been achieved; and
- assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved with a system that imposes less regulation.
The review is narrow in scope and is not a consultation on how the Regulations might be amended or changed. Proposals to improve reporting on supplier payment policies and practices were included in the government’s consultation on changes to the UK’s audit, corporate reporting and corporate governance regimes (see ARGA and PIEs: reform of UK corporate reporting/governance regimes).
Timing
Responses are due by 4 February 2022 and the government intends to publish a single report before 6 April 2022.
