Published on: 19 September 2024
This change comes as part of a broader initiative by the Small Business Commissioner and the Department for Business and Trade, which aims to improve payment practices across the UK's supply chains, with a focus on supporting small and medium-sized enterprises (SMEs).
As businesses prepare for the introduction of the Fair Payment Code, the TISCreport Transparency Report offers an essential tool to help companies track their payment performance, stay compliant, and demonstrate their commitment to ethical business practices. With the Fair Payment Code's new Gold, Silver, and Bronze categories, TISCreport will provide the critical data needed for businesses to uphold the standards of fair payment. TISCreport already shows Prompt Payment Code signatories and suspensions, and provides this dataset for companies via their supplier dashboards.
1. Understanding the New Fair Payment Code
The Fair Payment Code builds on the foundations of the Prompt Payment Code, which has been in operation since 2008 with over 5,000 signatories. The new code aims to set even higher standards for businesses, rewarding those that pay their suppliers promptly and fostering more resilient supply chains.
The Fair Payment Code will introduce three award levels:
- Gold: For companies paying 95% of their suppliers within 30 days.
- Silver: For companies paying 95% of small business suppliers within 30 days and all other suppliers within 60 days.
- Bronze: For companies paying 95% of suppliers within 60 days.
The Fair Payment Code is designed to be more aspirational and enforceable, encouraging businesses to improve their payment practices and move up through the award categories over time.
2. How TISCreport Can Help Businesses Stay Compliant
With the transition from the Prompt Payment Code to the Fair Payment Code, businesses will need to demonstrate adherence to the new Fair Payment Principles, which will set the criteria for the award categories. The TISCreport Transparency Report already tracks Prompt Payment Code signatories and will continue to provide the data needed for companies to comply with the new Fair Payment Code.
As a subscription service, TISCreport enables businesses to:
- Evidence payment performance: Show transparently how quickly you are committing to paying suppliers.
- Benchmark performance: Compare your payment practices with industry peers.
- Demonstrate commitment: Show stakeholders that you are committed to ethical payment practices, helping you build trust with suppliers, customers, and partners.
By providing access to transparent data on supplier payment times, TISCreport will be an indispensable tool for businesses aiming to monitor adherence to the Fair Payment Code.
3. Why Payment Transparency Matters
As the Small Business Commissioner and the Secretary of State for Business and Trade have made clear, fair payment practices are essential for creating sustainable, resilient businesses. The Fair Payment Code is not just about compliance; it is about building confidence in supply chains, particularly for SMEs that rely on prompt payments to grow, innovate, and invest in their businesses.
The TISCreport Transparency Report helps businesses showcase their payment practices to suppliers and stakeholders. With the Fair Payment Code placing a greater emphasis on transparency and enforcement, having a reliable system for tracking and reporting payment data is crucial. TISCreport provides this capability, ensuring that businesses can meet the new standards and be recognised for their fair payment practices.
4. Fair Payment Code and the Wider Regulatory Landscape
The introduction of the Fair Payment Code comes alongside a package of measures designed to improve business practices and support SMEs. This includes stepping up enforcement of Prompt Payment Reporting Regulations, which require large companies with more than 500 employees to report their payment performance twice yearly on http://GOV.UK . Non-compliance with these regulations can lead to criminal prosecutions and significant fines for responsible directors.
TISCreport's subscription service can help businesses manage their obligations under these reporting regulations, providing detailed data on payment practices that can be used for both compliance and public reporting. By staying on top of these requirements, businesses can avoid penalties and demonstrate their commitment to ethical and transparent business practices.
5. Preparing for the Fair Payment Code with TISCreport
With the Fair Payment Code launching later this year, now is the time for businesses to review their payment practices and ensure they are ready to meet the new standards. Whether your business is aiming for Gold, Silver, or Bronze status, the TISCreport Transparency Report provides the tools you need to track your performance against your peers and make the necessary improvements.
TISCreport's data subscription service will be updated to reflect the new Fair Payment Code criteria, helping businesses transition smoothly from the Prompt Payment Code to the new framework. By subscribing to TISCreport, you can ensure that your business remains compliant, competitive, and committed to ethical payment practices.
Conclusion: Get Ahead with TISCreport
The introduction of the Fair Payment Code marks a significant step forward in improving payment practices across the UK. As businesses prepare for this transition, the TISCreport Transparency Report offers an invaluable resource to help them track payment performance within their supply chains and build trust with suppliers.
By subscribing to TISCreport, businesses can transparently demonstrate their commitment to fair payment practices, secure Gold, Silver, or Bronze status under the new code, and contribute to a more sustainable, resilient economy.
