New reporting requirement on supplier payment practices

Large UK companies and groups will soon need to provide more information about how quickly they pay suppliers. New legislation requires certain payment practices information to be included in the directors’ report for financial years beginning on or after 1 January 2026.

Many large businesses already report payment performance through a Government reporting portal. The new rules bring key elements of that information into the annual report, making it more visible to shareholders, lenders, suppliers and other stakeholders.

The disclosures will include information about:

• Standard supplier payment terms.
• How quickly suppliers are paid.
• The proportion of invoices paid within 30 days, between 31 and 60 days, and after 60 days.
• Certain payment-related policies and practices.

The changes are intended to improve transparency and encourage prompt payment across UK supply chains. Companies that already fall within the existing payment reporting regime should review their processes now to ensure the information reported can support the new annual reporting requirements.

If your business may be affected by these changes, please speak to your usual HWB contact to discuss the new requirements and any actions that may be needed ahead of your first reporting period.

If you would like advice on how the changes may affect your organisation or property projects, please get in touch with Alan Davies using the details below.