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Supplier Payment Reporting

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Multi-academy trusts should be aware that they may need to comply with the Supplier Payment requirements, with the first report being due by 30 March 2018.

These rules apply to ‘large’ organisations, which for this purpose are these which exceed 2 out of 3 criteria:  turnover in excess of £36m; total assets in excess of £18m; staff numbers exceeding 250.  Hence many MATs will be caught because of their property values and staffing numbers. However there are transitional rules whereby the requirement only applies after the criteria have been met for two consecutive financial years

The disclosure requirements relate to how fast the organisation pays its suppliers. We appreciate that it may be difficult to obtain accurate data for the first return and so it may be necessary to file estimated figures, with accuracy improving in subsequent returns.

  • Applies to all organisations that are classified as large (exceeding 2 out of 3 criteria: turnover in excess of £36 million; total assets (ie fixed assets, plus current assets) in excess of £18 million; more than 250 employees)
  • These figures are as shown in the trust’s most recent financial accounts and the criteria must have also been exceeded in the previous accounts
  • When a trust meets these criteria, it must report thereafter on a 6 monthly basis, with reports due 30 days after the end of each period
  • Since academy trusts have a 31 August year end, the first potential reporting period will end on 28 February 2018
  • So first report due by 30 March 2018
  • Requirement to report:
    – Standard payment terms and process for dispute resolution
    – Statistics on the average number of days taken to make payments to suppliers
    – Percentage of payments made in 30 days or less, between 31 and 60 days and in 61 days or more
    – Percentage of payments not made within agreed terms
    – Whether suppliers are offered e-invoicing and if supply chain finance is available
    – Any charges for being on a suppliers list
    – The name of any payment code observed
  • Reporting is via a government web-based reporting service
  • Government guidance can be found here