Fears as reporting rules not being obeyed

More than half of Scottish corporates are failing to comply with new supplier payment reporting regulations, which will concern small firms, analysis published today by KPMG in Scotland has found.

The accountancy giant said fewer than half of those north of the Border required to file under the Payment Practices and Performance Reporting regulations introduced in April have managed to do so.

The first reports under the legislation were due at the end of last year, but as of 5 January, only 17 Scottish-registered businesses had filed, with KPMG having expected more than twice this number.

The new rules call on UK firms of a certain scale which KPMG believes should number about 900 in Scotland - to report on a half-yearly basis on their payment practices, policies and supplier payment performance. The step was taken to address growing concerns – particularly among SMES, regarding the severe problems resulting from not being paid on time that can in extreme cases lead to insolvency – and help speed up payment.

Alan Flower, a director in KPMG’S regional advisory practice, said the new legislation “appears to have flown below the radar”. He also stated that generally, suppliers are paid punctually only about two-thirds of the time, and the average time to pay invoices is nearing 50 days. “KPMG in Scotland will be monitoring and reporting on the Scottish results quarterly, and will also assist the larger corporate community to meet their reporting obligations under the new legislation.” 0 Rules have ‘flown below radar’: KPMG’S Alan Flower