Victory in fair payment campaign


Time limit for settling invoices cut to 30 days


S


ELECT has welcomed a major milestone in its long-running campaign for fairer payment terms for small businesses, after sweeping reforms were made to the UK


Government’s Prompt Payment Code. Under the new obligations announced


in January, nearly 3,000 companies which are signed up to the Code will have to pay 95% of small business suppliers within 30 days of invoicing, halving the current time limit. SELECT has been prominent among


industry bodies in highlighting the issue of payment abuse, pointing out that £23.4 billion of late invoices are currently owed to companies across Britain. Managing Director, Alan Wilson, said:


“SELECT has been voicing its concerns about this damaging issue for many years and these reforms will go a considerable way to easing some of the pressure on small business owners. “Smaller companies need all the help they can get at the moment as the construction sector continues its uphill


struggle to emerge from the grip of the pandemic.” According to the Federation of Small Businesses, 50,000 enterprises close their doors every year as a direct consequence of late payment. Alan added: “Over years of listening to our Members, late payment has always been at the forefront of their issues. “It causes real hardship to businesses and has a knock-on effect. It has hit hard in the last year on top of the restrictions the sector has faced, and I believe the reforms will be welcomed by ethical and responsible businesses. It is heartening that all our years of lobbying on this subject have secured a tangible result.” The requirement to pay small businesses within 30 days will become effective from 1 July, with the existing target to pay 95% of larger businesses within 60 days remaining in place. Changes which come into effect immediately include a requirement for the most senior person in a firm to sign the Code personally, acknowledgement that suppliers can charge interest on late invoices and the enablement of Code administrators to investigate breaches.


NEW MEMBERS Eight firms have become SELECT Members since 1 December 2020


WM Brown & Co (Maintenance) Ltd, Lanarkshire


I.T Electrical, Glasgow & West of Scotland


Reactive Service Solutions, Edinburgh & South East Scotland


Ailsa Building Contractors Ltd, Lanarkshire


CDM Electrical Aberdeen Ltd, Aberdeen & North East Scotland


Orbis Services Ltd, Inverness & North of Scotland


KD Electrical, Dumfries & Galloway


Kevin MacDonald Electrical Services Ltd, Inverness & North of Scotland


SELECT help for Members over


reverse VAT plan SELECT is currently preparing a range of information on reverse charge VAT to help Members navigate the new legislation when it comes into force on 1 March. A brochure and template letters


are being produced for Members to download free of charge, along with helpful webinars on the topic. Te scheme is being introduced


despite SELECT being among 40 contractor and trade association members who wrote to Chancellor Rishi Sunak on January 13, urging the UK Government to delay it. It is the second time SELECT and its


fellow trade bodies have pressed the case for a rethink after a letter sent last December went unanswered. John McGhee, SELECT’s Director


of Finance & Resources and Association Secretary, said: “Te introduction of reverse charge VAT is extremely disappointing, and we still feel it could be seriously detrimental to the economic recovery. “However, we will continue to


support Members who may be impacted by the change and are preparing a range of materials to help them navigate the new system step-by-step.” VAT reverse charging means that


businesses which are both VAT and Construction Industry Scheme registered will no longer pay VAT to most of their sub-contractors. Instead, VAT will only be paid


to firms which supply only labour (employment businesses) and to the merchants and businesses that sell building materials only without any fix.


Watch a webinar on reverse vat at bit.ly/ VAT-web - SELECT will be issuing more


Member guidance this month. CABLEtalk FEBRUARY/MARCH 2021 13


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44