Contact Us

32 of the Government’s biggest suppliers have signed up to the Prompt Payment Code, which helps small businesses to be paid on time, committing to pay 95% of invoices with 60 days.

The code is administered by the Chartered Institute for Credit Management (CICM) on behalf of the Department for Business, Energy & Industrial Strategy (BEIS).

The Government also revealed that the 32 suppliers will aim to pay within 30 days, and will work towards making this the norm. The voluntary code of practice publicly signifies organisations’ commitment to fair payment terms to suppliers, especially smaller sized businesses.

Parliamentary Under Secretary of State in the Cabinet Office, Caroline Nokes, said: “This is a major boost to payment practices in the UK. Paying invoices on time is vital in providing healthy cash flow to smaller businesses, to help them survive and thrive.”

The Crown Commercial Service (CCS) encourages businesses to sign up to the Prompt Payment Code especially in the case of small businesses as it aids cash flow. It is estimated that small businesses in the UK are collectively owed more than £26bn in overdue payments.

Signatories to the code are major strategic suppliers who typically have contracts across government of more than £100 million. Together they account for around 40% of government procurement spend.

Small Business Minister, Margot James, said: “We want the UK to be the best place in the world to start and grow a business, but the UK’s small-to-medium-sized businesses are currently owed over £26 billion in overdue payments. Such unfair payment practices hamper a business’s ability to invest in growth, and have no place in an economy that works for everyone.

“It is only right that the Government should lead by example, and it’s great to see all 32 of our strategic suppliers signed up and committed to fair payment terms.”

Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), commented: “It is good to see the Government fulfilling one of its manifesto pledges by getting big government contractors to sign up to the Prompt Payment Code.

“What the small business community needs now is further action to give the voluntary Prompt Payment Code even greater teeth. The Government should make it mandatory for all FTSE 350 businesses to sign up to the Prompt Payment Code and introduce a tough penalties regime for repeat offenders of poor payment practices.”

Date published 11 Jul 2017 | Last updated 11 Jul 2017

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free, no obligation consultation

0800 0523 555

Or contact us