Overall, HMRC is meeting its pledge to consistently achieve the government’s target to pay 80% of undisputed invoices within five days, but there has been a drop off in prompt payment performance.

In the third quarter of 2017/18, the department paid 94.84% of invoices within five days, a decline from the 96.05% rate recorded the previous quarter, and well below the 99% and 98% rates regularly logged in earlier years. In the second and third quarters of 2015/16, for instance, the equivalent statistics are 98.67% and 98.57%.

In addition while HMRC paid 99.8% of invoices within 30 days in the third quarter last year, as it did the previous quarter, this year’s figures are the lowest proportion for the three years it has been collecting the data.

The number of invoices HMRC pays after the 30 day limit is also creeping up.  While the total  number of invoices paid after 30 calendar days in the period April 2016 to March 2017 was 606, with a quarter of the financial year to go, HMRC says the number of invoices paid after 30 calendar days in the period April to December 2017 was 1,166.

Total amount of liability to pay varied from £510 to £4,518 each quarter of 2016/17, but the current potential interest liability for the third quarter of 2017/18 is put at £18,104, with potential liabilities of £11,363 and £6,861 in the earlier two quarters.

HMRC prompt payment performance results are here.

Report by Pat Sweet