Late payment reaches £23bn in 2016 following Brexit result
The CIOB publication, Construction Manager, has published an article discussing Brexit’s impact on late payments for SME’s. Since the referendum, late payment has had an overall increase to £23bn – a figure that will have a massive impact on subcontractors given that construction accounts for 31% of late payment across all sectors. These results coincide with the introduction of new UK legislation calling for large businesses to report on their payment practices and performance.
The article touches on Payapps.com, and how the software helps businesses stay compliant with the new ‘Duty to Report on payment practices and performance‘ legislation. Payapps.com published their own eGuide to help businesses understand how this will affect them, and what they’re required to do. You can find the eGuide here.
Duty to report
This new UK legislation states that businesses that meet two of the three following criteria, are required by law to publicly disclose their payment practices and performance.
- £18m+ balance sheet
- £36m+ turnover
- 250+ employees
Currently a voluntary exercise, the legislation will be mandatory from October. Failure to report will be a criminal offence and will have significant consequences for any business that qualifies. Both directors and business will be liable for fine on summary conviction. Publishing a report with false or misleading information will also be classed as a criminal offence.
The solution – Payapps.com
By using an online solution to manage the application for payment, valuation and certification process, principal contractors can demonstrate fair payment practices which are backed up by a full audit trail. Payapps.com provides a secure, efficient environment for the exchange of information necessary to certify a contract payment. Designed specifically for the construction industry, it is simple for both parties to use. Allowing both applicants and respondents to accurately issue conforming applications for payment and payment notices, it ensures compliance with common law contracts and the Construction Act.
To find out more, book a free online or onsite demonstration by calling us on 0191 280 5080 or email firstname.lastname@example.org.