HETAS has now signed up to The Prompt Payment Code (PPC). The Code is a voluntary code of practice for businesses, administered by the Office of the Small Business Commissioner (SBC) on behalf of BEIS. It was established in December 2008 and sets standards for payment practices between organisations of any size and their suppliers.
Paying suppliers or partners promptly and within the agreed payment terms is not only an ethical responsibility but economically beneficial for all parties and the wider economy. Speed and certainty of payment and stable cashflow are essential for all businesses to flourish and grow.
Under the ethos of the code signatories have always undertaken to:
- pay suppliers on time, within agreed terms;
- give clear guidance to suppliers on terms, dispute resolution and prompt notification of late payment;
- support good practice throughout their supply chain by encouraging adoption of the Code.
Speaking on the importance of being part of the Prompt Payment Code, Head of Corporate Services, Helen Thomas:
As a not-for-profit organisation it is really important for HETAS to meet the highest standards of business administration and signing up to the Prompt Payment Code demonstrates our commitment to paying businesses on time. Small businesses form the largest make up of our registered businesses and these businesses rely on a regular cash flow to be able to operate on a daily basis.
HETAS further supports small businesses in getting paid through our ongoing with Prompt Payer, an ethical debt recovery service.
Earlier in the year, the code was strengthened by:
- onfirming the requirement to pay 95% invoices within 60 days
- introducing an added requirement that 95% invoices from small businesses (with less than 50 employees) must be paid within 30 days (effective from 1 July 2021 for existing signatories)
- requiring small and medium sized signatories to report annually on their payment performance, on a comply of explain basis
- promoting and strengthening the Code website
- requiring signatories to recognise the right of suppliers to charge late payment interest and charges if an invoice is paid late without justification
- stating that applications to join the Code must be signed by the Chief Executive, Finance Director or, in the case of smaller businesses, the company owner
- suppliers should be provided with a contact point for payment queries
Businesses wanting to sign up to the Prompt Payment Code can do so via the Small Business Commissioner’s website.
The Small Business Commissioner (SBC) is an independent public body set up by Government under the Enterprise Act 2016 to tackle late payment and unfavourable payment practices in the private sector. The SBC covers the whole of the UK – England, Wales, Scotland and Northern Ireland.