The government decision to end the special arrangement that helped to fund insolvency litigation has met with widespread criticism from business and legal professionals. The trade body R3 said it would amount to a “half-billion-pound pay day for rogue directors”. The controversy arose when the government confirmed that from April this year, insolvency litigation will
Nearly a third of small businesses expect the problem of late payment and cash flow to get worse, according to a survey conducted by Lloyds Bank. The survey reveals that late payment of invoices remains the main cause of cash flow problems facing UK firms. One in five businesses admit it’s causing them difficulties, and
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The government is planning to appoint a Small Business Commissioner to help firms tackle late payment problems and unfair practices carried out by larger companies. The move comes after research by Bacs showed that small and medium-sized businesses are owed a total of £26.8 billion in overdue payments and that £10.8 billion is spent per
The government is being urged to throw out the rulebook relating to late payments and start afresh if it really wants to tackle the problem that bedevils so many small businesses. The Association of Chartered Certified Accountants (ACCA) has conducted a widespread study into the issue and produced a report, Ending Late Payment. It says
Large companies will have to publish their payment practices from next April, under plans laid down by the Coalition Government. Companies will also have to publicly state whether they require financial incentives to continue working with suppliers. It’s uncertain whether the plans will be scrapped by the incoming government, but none of the main parties
The government is tightening up the Prompt Pay Code (PPC) to encourage firms to pay invoices quicker and so improve cash flow for smaller firms. Business Minister Matthew Hancock says the PPC will now promote 30-day terms as standard and introduce a 60-day maximum limit. Unless firms can show there are exceptional circumstances that justify
The government is introducing a series of new measures to deal with the growing problem of late payment of invoices. It could lead to trade bodies being given the power to take legal action against large firms that impose unfair terms on smaller businesses. Large supermarkets may also face fines for breaching regulations. The proposals
A proposed 5% increase in court fees could deter small businesses pursuing claims for late payments, according to the Bar Council, which represents barristers in England and Wales. The Ministry of Justice is planning to impose a 5% blanket fee on businesses and individuals bringing a claim for money – such as late payments, debt
Large and listed firms may soon have to publish details about their payment practices under proposals being drawn up by the government. Companies will have to provide information about their average payment time and the proportion of invoices paid beyond terms. They will also have to reveal the percentage of invoices paid within 30 days,