Prompt Payment Reforms Are Coming

Did you know that it is estimated that in the UK SME sized organisations are owed £23bn in late payments?

In these unprecedentedly difficult times the survival of small suppliers can depend on how quickly they get paid. That is why nearly 3,000 organisations have already signed up to the Prompt Payment Code.

In July this year the Prompt Payment Code will be strengthened so that 95% of payments to SMEs must be paid within 30 days and those companies will be permitted to charge interest on overdue payments. For this, SMEs are defined as organisations with less than 50 employees … for companies with more the 60 day payment limit will stay.

Not only that, the prompt payment “pass mark” for companies bidding to supply Government with work in excess of £5m per annum will increase on 1 April to 85% of all invoices to be paid within 60 days – up from 75%. Organisations that fail to meet these targets are in danger of being excluded from winning government contracts.

So, are you confident that you will be able to meet these targets? Are your systems and processes robust enough? Has your Accounts Payable Team been impacted by Covid-19? Do you have a backlog of invoices that you’ll need to clear before this change?

Liberata is here to help.

We have been supporting our customers’ Accounts Payable function for many years – processing backlogs and getting the organisation in the position where they can pay their suppliers in a timely fashion and get paid promptly by their customers.

Our Back on Track service allows you to get your finances into shape ahead of this change to the Prompt Payment Code.

Contact us to learn more about how we can help you get ready for the Prompt Payment Code changes.

See how Liberata can help your organisation.

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Welwyn Hatfield Borough Council
Following a formal process and tender notice, Liberata stood out with its ability to transform our services and improve customer access and digital services. Liberata has demonstrated it can achieve high collection rates across business rates and Council Tax services and benefits by improving processing times. We look forward to working with Liberata to help transform these services for our residents and ensuring we are providing the appropriate levels of support to the most vulnerable in our area.
A spokesperson for Swindon Borough Council
Swindon Borough Council
Eastleigh Borough Council has worked with Liberata for a number of years who undertake the council's empty home reviews, and I must say, their service exceeded all expectations. From start to finish, they demonstrated professionalism, efficiency, and a genuine commitment to addressing this critical issue in our community. Thanks to Liberata, the council has been able to maximise our empty home bonus year on year. This positive impact on our community cannot be overstated.
Kerrie Thomas
Eastleigh Borough Council
The RV Finder service from Liberata has really helped us ensure that our data is as accurate as possible and, when the VOA has processed the outstanding cases, I fully expect to see more than £1,000,000 of additional RV. The “risk and reward” model works well and the Council only has to pay for their success and the service is something that we will use on a regular basis.
Steve King
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Liberata has been empowered to create a seamless integration with technology to digitally transform the Revenues and Benefits service whilst trying to protect local jobs. The joint strategy has helped to deliver innovative solutions that have exceeded expectations, whilst providing savings to the authority. This surge in digital engagement has helped deliver strong year one outturn with electronic billing and the technology will enable us to show improvements in the benefits speed of processing and in Council Tax processing of moves, discounts and exemptions.
Andy Stevens
Swindon Borough Council
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