On Wednesday 10 January the Department for Business and Trade (DBT) laid the Reporting on Payment Practices and Performance (Amendment) Regulations 2024.
These Regulations amend existing regulations, which impose a requirement on large companies and limited liability partnerships (LLPs) to publish certain information twice per financial year about their practices, policies and performance in relation to paying suppliers. These Regulations extend the Principal Regulations and the LLP Regulations beyond their current sunset date of 6 April 2024 to 6 April 2031 and require additional information to be reported by qualifying companies and LLPs. This includes requirements for qualifying companies to publish information on the value of payments made within a qualifying period and information on payments that were not paid under qualifying contracts. The Regulations can be found here.
The Government response to the public consultation on the amendments to the Payment Practices and Performances Regulations 2017 was published alongside the Autumn Statement 2023, and confirmed the introduction of a requirement for qualifying businesses that are parties to construction contracts to report on their retention payment policy and key statistics in relation to retentions.
Legislation for the new retention reporting requirements is expected to be laid before Parliament in 2024. It is anticipated that qualifying business will commence data collation and include in their payment practices and performance reports during 2025.