The 60-Day Payment Cap

What is it?

The UK Government has announced legislation to introduce a 60-day cap on B2B payment terms for qualifying companies. This means large businesses cannot contractually require payment terms longer than 60 days.

Who does it apply to?

The legislation applies to qualifying companies above certain size thresholds (details to be confirmed when the legislation is enacted).

What are the implications?

Maximum payment terms of 60 days
Reporting requirements for exceptional cases
Potential penalties for non-compliance

Current status

Note: This legislation is pending enactment. The specific details, effective date, and enforcement mechanisms will be confirmed when the relevant statutory instrument is passed.

This page is for general information. It is not legal advice. Check gov.uk for the latest legislative status.