Smaller sized firms will be pleased to hear that a new survey shows that MPs are in favour of new measures to prevent late payments to SMEs.
The survey, compiled by YouGov on behalf of the Association of Accounting Technicians (AAT) and the Association of Chartered Certified Accountants (ACCA), revealed that 65% of MPs believe the Prompt Payment Code (PPC) should be made compulsory for organisations with 250+ employees.
Currently, PPC is voluntary and only requires those businesses that are signatories to it to pay 95% of invoices from businesses with fewer than 50 employees within 30 days, amongst other measures.
AAT Chief Executive Sarah Beale, commented on the findings, “In this economic climate, small businesses need support more than ever – they simply cannot afford to operate while waiting to be paid. Given the pivotal role small and micro business play in our economy, robust measures are needed to ensure late payments are dealt with seriously.
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Email Jaime“We want to see the Prompt Payment Code made mandatory for large businesses and for the Small Business Commissioner to have the power to fine persistent offenders.
“This is an issue that both AAT and ACCA consider to be important, so it is encouraging to see that there is cross-party support for the cause – but now we need to see that support turn into tangible action taken by the government to crack down on late payments, make organisations more accountable and, in doing so, help small businesses and the wider economy to thrive.”
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