Big businesses told to speed up payments to small suppliers
19/01/2021 | news | business | 24
Changes to the Prompt Payment Code mean large companies will have half as long to pay small firms.
1
19/01/2021 10:44:07 4 1
bbc
I'd like to thank the chancellor, treasury and HMRC for introducing the fantastically thought through legislation restrictions known as IR35.

Small companies trying to work with big companies can no longer do so as they're terrified as being seen as "disguised employees". This means if you want work you have to pay full tax as a temp with no job security...so why would they ever employ again?
14
19/01/2021 12:31:16 0 0
bbc
The Chancellor in this case being Gordon Brown. Sounds like you got caught trying to fiddle the system as the underlying logic (stopping people being paid via companies to avoid tax) was sound.
18
19/01/2021 17:12:00 0 0
bbc
Small companies don’t get caught. It’s self employed contractors who get caught and yes they may not get the same perks as employees but do get to charge a higher rate of pay
2
19/01/2021 11:06:06 6 2
bbc
This doesn’t go far enough, all companies should have to pay on 30 days. Restricting it just to small companies won’t work, other large companies still need the money to pay their smaller suppliers. It should be no more acceptable to pay a supplier late than an employee. Failure to pay suppliers restricts suppliers from paying their staff.
12
19/01/2021 12:12:56 0 0
bbc
you have this the wrong way round. This is about execting big biz to pay small biz more quickly.
1
19/01/2021 10:44:07 4 1
bbc
I'd like to thank the chancellor, treasury and HMRC for introducing the fantastically thought through legislation restrictions known as IR35.

Small companies trying to work with big companies can no longer do so as they're terrified as being seen as "disguised employees". This means if you want work you have to pay full tax as a temp with no job security...so why would they ever employ again?
3
19/01/2021 10:57:30 2 0
bbc
4
19/01/2021 11:07:34 7 2
bbc
In other countries payment is made within 30 days. Why not in the UK? Legislation needed.
11
19/01/2021 12:07:42 1 2
bbc
Total BS. A quick google shows in UK average B2B payment takes 23 days, France 34 days, Germany 21, Western Europe average was 34 days, Eastern Europe 37 days, USA 35 days, Canada 37 days, Mexico 27 days, Brazil 38 days.

So exactly which countries were you talking about?
5
19/01/2021 11:12:24 5 0
bbc
I know a few SME owners who have had problems with slow payment of invoices from bigger companies who can throw their weight around a bit. It is, after all, a capitalist market that benefits big businesses more. But there's almost nothing they can do about it - HMCTS has also been significantly affected, so pursuing these businesses via court is nearly impossible.
23
20/01/2021 10:11:41 0 0
bbc
Plus how long would it take to put through a court with record backlogs
6
19/01/2021 11:27:07 10 1
bbc
'Twas ever thus
The super rich get 'there' by keeping other people's money 'tied up'
Those of us who've run a business, WITHIN an extensive supply chain, will have taken 'a hit' when non-paying customers/thieves go bankrupt & only pay pennies for the £'s owed!
What's most annoying is being contacted by ex-Directors/thieves, starting another similar company, expecting credit!
Never
Lesson learnt!
7
19/01/2021 11:39:39 5 0
bbc
prior to covid, I needed to chase up late payment of less than 5% of invoices. Things ahve changed now though and I find the need to chase up at least 95% of invoices as mainly large organisations hold onto the money even longer before reluctantly paying for work that they ahve already benefited from being completed.
8
19/01/2021 11:40:54 3 0
bbc
It's a baby step in the right direction but it should be legislation that all invoices are paid within 30 days no matter the size of the company.
A problem I can see is that larger companies are not covered therefore if you want/need to take longer to pay then you buy services from larger companies and stop using small companies. Like any legislation this might have unintended consequences.
9
19/01/2021 11:47:24 7 1
bbc
In my day, in my company, invoices were paid on receipt, unless there was an issue with the goods or service. I never understood the idea of taking four weeks to pay for something that was sat in my warehouse.
10
19/01/2021 11:58:08 6 1
bbc
I was involved in payments for a large utility company, the MD being an accountant.

Payments were meticulously delayed. The company had no cash flow problems.

The benefit to the company in interest on delayed payments was trivial, but ill will was generated and time wasted in dealing with requests for payment of invoices outstanding.

Legislation might save companies from their own stupidity.
4
19/01/2021 11:07:34 7 2
bbc
In other countries payment is made within 30 days. Why not in the UK? Legislation needed.
11
19/01/2021 12:07:42 1 2
bbc
Total BS. A quick google shows in UK average B2B payment takes 23 days, France 34 days, Germany 21, Western Europe average was 34 days, Eastern Europe 37 days, USA 35 days, Canada 37 days, Mexico 27 days, Brazil 38 days.

So exactly which countries were you talking about?
2
19/01/2021 11:06:06 6 2
bbc
This doesn’t go far enough, all companies should have to pay on 30 days. Restricting it just to small companies won’t work, other large companies still need the money to pay their smaller suppliers. It should be no more acceptable to pay a supplier late than an employee. Failure to pay suppliers restricts suppliers from paying their staff.
12
19/01/2021 12:12:56 0 0
bbc
you have this the wrong way round. This is about execting big biz to pay small biz more quickly.
13
19/01/2021 12:23:16 1 0
bbc
30 days is meaningless when cash cow retailers don't allow suppliers to invoice for goods until sold and cash received. Small businesses are rarely able to buy on credit now but are expected to fund their customer's cashflow - this must stop. All stock quoted corporates should be inspected regularly and fined the value of goods RECEIVED in the previous 30days but not yet paid.
1
19/01/2021 10:44:07 4 1
bbc
I'd like to thank the chancellor, treasury and HMRC for introducing the fantastically thought through legislation restrictions known as IR35.

Small companies trying to work with big companies can no longer do so as they're terrified as being seen as "disguised employees". This means if you want work you have to pay full tax as a temp with no job security...so why would they ever employ again?
14
19/01/2021 12:31:16 0 0
bbc
The Chancellor in this case being Gordon Brown. Sounds like you got caught trying to fiddle the system as the underlying logic (stopping people being paid via companies to avoid tax) was sound.
15
Bob
19/01/2021 12:55:04 4 0
bbc
Nothing will change until LEGISLATED.
16
19/01/2021 13:35:15 2 0
bbc
Day after day we see requests - nearly all from large companies - for 60/90 day credit terms - but always refused!
17
19/01/2021 16:38:13 2 0
bbc
Make it Law not a voluntary code. Far too much wriggle room and non compliance possible as its suits. Also shouldn't it be 30 days for all? If everyone stuck to 30 days, cashflow would be improved with certainty and businesses would be able to plan better.
1
19/01/2021 10:44:07 4 1
bbc
I'd like to thank the chancellor, treasury and HMRC for introducing the fantastically thought through legislation restrictions known as IR35.

Small companies trying to work with big companies can no longer do so as they're terrified as being seen as "disguised employees". This means if you want work you have to pay full tax as a temp with no job security...so why would they ever employ again?
18
19/01/2021 17:12:00 0 0
bbc
Small companies don’t get caught. It’s self employed contractors who get caught and yes they may not get the same perks as employees but do get to charge a higher rate of pay
19
19/01/2021 20:31:37 1 0
bbc
Companies should be named and shamed for late and/or non payment of suppliers invoices.
20
20/01/2021 08:31:45 2 0
bbc
iknowweregreat,
20:31 19 Jan
Companies should be named and shamed for late and/or non payment of suppliers invoices.

**

Again : try reading the article............................

This has been an issue for years : real teeth needed to enforce this but never seems to happen.
21
20/01/2021 09:46:21 0 0
bbc
Your point is a given but the article states it is voluntary so name and shame may deter some of the larger companies and the great and good (who don't sign up) from ripping of small suppliers. Would this not help?
20
20/01/2021 08:31:45 2 0
bbc
iknowweregreat,
20:31 19 Jan
Companies should be named and shamed for late and/or non payment of suppliers invoices.

**

Again : try reading the article............................

This has been an issue for years : real teeth needed to enforce this but never seems to happen.
21
20/01/2021 09:46:21 0 0
bbc
Your point is a given but the article states it is voluntary so name and shame may deter some of the larger companies and the great and good (who don't sign up) from ripping of small suppliers. Would this not help?
22
20/01/2021 10:09:25 3 0
bbc
Same issue that's been doing the rounds for DECADES nothing will change, more fine words and blather from Government..
5
19/01/2021 11:12:24 5 0
bbc
I know a few SME owners who have had problems with slow payment of invoices from bigger companies who can throw their weight around a bit. It is, after all, a capitalist market that benefits big businesses more. But there's almost nothing they can do about it - HMCTS has also been significantly affected, so pursuing these businesses via court is nearly impossible.
23
20/01/2021 10:11:41 0 0
bbc
Plus how long would it take to put through a court with record backlogs
24
20/01/2021 22:32:52 0 0
bbc
Government bodies are terrible for settling bills. Often upwards of 120 days. We now refuse to bid or take on anything government related.