DBT updates payment reporting guidance
The Department for Business and Trade (DBT) has updated its guidance to the Reporting on Payment Practices and Performance Regulations setting out how companies should report on new metrics on retentions. Companies using retentions will be required to include the following information in their payment reports every six months:
- A series of statements covering the company’s policy on retentions, including when they are used, any standard terms, and the process for their release
- The amount of retention withheld by the company from its suppliers, as a percentage of the amount withheld against it by its clients
- The amount of retention withheld by the company from gross payments made to its suppliers, as a percentage of the gross amount paid to its suppliers.
The new metrics will apply to each financial year of a company beginning on or after 1 April 2025. This means that for companies with a financial year beginning on 1 January, their first reports containing the new metrics will be for the period 1 ‐ 30 June 2026 and need to be submitted by 30 July 2026.
The Small Business Commissioner has announced the first companies to sign up to the new Fair Payment Code (FPC).
