Guidance has been published on new rules requiring large businesses to report their payment data in directors’ reports.

The Companies (Directors’ Report) (Payment Reporting) Regulations 2025 came into force at the beginning of this year and supplement existing rules which require large companies and LLPs to report on their payment practices, policies and performance.

Under the new regulations, some of the information that is required to be uploaded to a government portal must now also be included in companies’ directors’ reports. According to the Government, this is intended to increase “transparency of payment performance to a company’s board and stakeholders” and generally address the persistent problem of late payments, which has already prompted action by Government as discussed here.

The regulations only apply to ‘large businesses’, defined by reference to the following criteria: (1) an annual turnover of over £54 million; (2) a balance sheet total of over £27 million; (3) 250 employees. Businesses that meet two of these three criteria will be required to include the following information in their directors’ reports:

1. A narrative description of the company’s standard payment terms;
2. The average time taken to make payments in the reporting period;
3. The percentage of payments made within the reporting period which were paid in 30 days or fewer, between 31 and 60 days, and in 61 days or longer;
4. The sum of payments made during the reporting period which were paid in 30 days or fewer, between 31 days and 60 days, and in 61 days or longer;
5. The sum of payments due within the reporting period which were not paid within the agreed payment period; and
6. The proportion of payments due within the reporting period which were not paid within the agreed payment period.

Guidance from the Department for Business Trade expands on these requirements and includes helpful examples to assist organisations in understanding and complying with their new obligations.

To read the guidance in full, click here.