Fewer than half of Scottish businesses required to file information on payment practices under new legislation have done so, analysis has found.
Payment Practices and Performance Reporting (PPPR) regulations, which came into force on April 6 last year, were created to name and shame companies that fail to pay suppliers on time.
They introduced a requirement for larger companies and limited liability partnerships (LLPs) to report their payment practices, policies and supplier payment performance through a publicly available online service.
The first reports under the legislation, which were due at the end of last year, showed only 17 Scottish registered businesses had filed.
Professional services firm KPMG said the number should be “significantly higher”.
The UK Government regulations were designed to address growing concerns among smaller businesses about severe administrative and financial burdens experienced from not being paid on time.
The regulation is applicable to large companies with 250 employees, annual revenues of £36 million and above, or assets of £18 million.
The publication reports on the average time taken to pay invoices and the percentage of invoices not paid within term.
Alan Flower, a director in KPMG’s regional advisory practice, said: “The new PPPR legislation appears to have flown below the radar, as we’re finding levels of awareness amongst the corporate community much lower than expected.
“However, we’re observing a degree of tolerance from the Government as companies respond to the new requirement.
“The reports filed by the end of last year still only number around 250 businesses across the UK, and the reporting regime is still very much in its infancy.
“Nevertheless, the statistics make for some interesting reading – on average, suppliers are paid punctually only around two thirds of the time, and the average time to pay invoices overall is approaching 50 days.
“We expect both the slow uptake in reporting and these initial results to be of concern to the small business community.
“KPMG in Scotland will be monitoring and reporting on the Scottish results quarterly, and will also assist the larger corporate community to meet their reporting obligations under the new legislation.”