Following its mention in the King’s Speech, the Small Business Protections Bill has now been put before Parliament.
The Bill introduces measures that are designed to help alleviate some of the difficulties smaller businesses face in getting paid. They include: - A 60-day cap on payment terms for large businesses paying small suppliers. - Mandatory interest on late payments. This is to be set at 8% above the Bank of England base rate. - A prohibition on withholding retention payments in construction contacts. - New powers for the Small Business Commissioner to be able to investigate businesses that have poor payment practices, arbitrate in disputes and fine persistent late payers. - A requirement for the boards or audit committees of large companies to publish explanations of late payment performance and what steps are being taken to improve.
Smaller businesses will be keenly watching the Bill’s progress through its Parliamentary processes to see when these measures will come into force.
New laws from the beginning of the month make it critical for companies that rely on subcontractors, agency staff or complex labour supply chains to review their compliance procedures to identify employees who do not have the right to work in the UK.
The annual report from the Administrative Burdens Advisory Board (ABAB) shows a slight improvement in HMRC’s performance but there is a rising concern over legislative burden and continued difficulties with communication channels.