Prompt Payment Code boosted to help SMEs
The Prompt Payment Code has confirmed that compliance with the new requirement to pay 95% of invoices from businesses with fewer than 50 employees within 30 days is being enforced from a signatory’s next full reporting period.
“It’s hoped the changes will help the Code to grow further, attract new and significant signatories, and give small businesses real confidence to expect prompt payment from their customers,” said Rob Driscoll, ECA’s Director of Legal and business.
For companies with a financial year ending 31 December 2021, this will be January 2022. The Code is encouraging signatories that are required to report under the Duty to Report regulations to include the information as part of their biannual report using the narrative box within the Payment Terms section.
In July 2021, the Code was strengthened to include a requirement to pay 95% of invoices within 60 days, report annually on payment performance, promote the Code website and more.
This article originally appeared on the ECA website. It was published on 8 December 2021.
--ECA
[edit] Related articles on Designing Buildings
- Cash flow.
- ECA articles.
- Prompt payment.
- Prompt payment code.
- Prompt Payment Code: the story behind the headlines
- Small and medium-sized enterprises SME.
- The causes of late payment in construction,
[edit] External resources
- ECA Today, The story behind the headlines: the Prompt Payment Code by Rob Driscoll.
- Small Business Commissioner, Code Reforms.
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
Construction Management, 8 July
NEETs crisis drives interest in trades, but apprenticeships barriers remain.
Passive fire protection webinar
MEP services penetration seals.
Where its at podcast (and video) - The role of the Architectural Technologist as an Expert Witness.
More than 200 remarkable buildings added to SAVE’s Buildings at Risk register.
Government scraps pre-application consultation for Nationally Significant Infrastructure Projects.
Historic England and infrastructure
New projects offer opportunities for the historic environment and local communities.
Construction Management, 2 July
Construction deaths halve in two years.
Green Book changes to drive investment in all parts of UK.
Minimum energy efficiency standards (MEES)
CIAT briefing on response to consultations for privately rented non-domestic properties.
Connect, collaborate, shape the future
Registration now live for UK Construction Week Birmingham.
CIOB announces Saul Humphrey FCIOB as new President for 26/27 term.
A quick, simple, and zero-bills solution to prevent overheating.