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ARTICLE · 09 JANUARY 2025

UK Government Launches Fair Payment Code

Lewis Silkin
Lewis Silkin
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Lewis Silkin

Lewis Silkin

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The UK government's new Fair Payment Code replaces the Prompt Payment Code, targeting late payment issues to save small businesses £22,000 annually. Key elements include mandatory payment terms, transparency, and support, with awards based on compliance levels.

United KingdomCorporate/Commercial Law
Helen Hart
Helen Hart
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In case you missed it, last month, the UK government has launched a new Fair Payment Code to replace the Prompt Payment Code. This aims to save small firms an estimated £22,000 per year. The Code is part of a broader strategy to improve access to cash and ensure timely payments, which the government says are critical for the sustainability and growth of small enterprises.

The Fair Payment Code is designed to address the longstanding issue of late payments, which has been a major challenge for small businesses. By enforcing stricter payment terms and promoting a culture of prompt payments, the Code aims to alleviate cash flow problems that often hinder small firms' operations and growth prospects. Its key elements include:

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