Reporting on Payment Practices and Performance Regulations Come Into Force

On 1st March 2025 the Reporting on Payment Practices and Performance (Amendment) Regulations 2025 came into force.

These Regulations amend existing regulations, which impose a requirement on large businesses and limited liability partnerships (LLPs) to publish certain information twice per financial year about their practices, policies and performance in relation to paying suppliers.

Qualifying businesses and LLPs are now required to publish certain information on their practices, policies and performance with respect to retention clauses in any qualifying construction contracts with suppliers. This measure will help increase transparency around retention policies and performance, and encourage improved payment practices.

Qualifying businesses are required to collect data and report (twice per year) on these new metrics for each financial year beginning on or after 1st April 2025.

The Regulations can be found here. Updated guidance can be found on the Government website. The guidance also includes further reporting details on the metric for the sum of payments made during the reporting period and changes from 6th April 2025 regarding the thresholds for a qualifying business to report.

As part of this work the Department for Business and Trade is refreshing the online service and is currently working on updates to accommodate the new reporting requirements for retentions. Participants (who are required to report under these regulations) are sought to test a prototype of the new features and improvements and provide feedback. Real data about payment practices is not required. Any feedback given will be anonymised and will not be attributed to any individual or business. A consent form is available to register interest. Research is expected to take place mid to late March.