This will include details of the average time taken to pay supplier invoices.

The new regulations follow a consultation on the issues, which closed in February 2015. Originally they were to be introduced in April 2016, but have been delayed due to further consideration of points raised, notably which companies are in scope, what information is to be reported and how frequently.

Originally the proposals were to apply to all quoted companies, but the scope has been narrowed in a bid to focus on large businesses only. These are defined as individual companies – whether private, public, quoted - and LLPs which exceeded two or all of three thresholds on both of their last two balance sheet dates. These are: over £36m annual turnover; over £18m balance sheet total; over 250 employees.

Each business in scope will be required to publish its own individual and non-consolidated reports, on the basis that a group may have very different business practices across its component parts, and suppliers will benefit from information about the specific business they are considering contracting with, rather than consolidated information about the wider group.

Large businesses must publish information about their payment practices and policies in relation to contracts which are for goods, services or intangible assets (including intellectual property), and connected to the carrying on of a business. Other kinds of contracts, notably business to consumer contracts, will not be covered.

In the published response to the consultation BEIS says they will be required to provide narrative descriptions of the organisation’s payment terms, including the standard contractual length of time for payment of invoices, maximum contractual payment period and any changes to standard payment terms and whether suppliers have been notified or consulted on these changes. They will also be required to outline the process for dispute resolution.

In addition, large businesses will need to supply statistics on the average time taken to pay invoices from the date of receipt of invoice, the percentage of invoices paid within the reporting period which were paid in 30 days or fewer, between 31 and 60 days, and over 60 days, and the proportion of invoices due within the reporting period which were not paid within agreed terms.

There will be a tick box to complete about whether an organisation offers e-invoicing or supply chain finance; whether the organisation’s practices and policies cover deducting sums from payments as a charge for remaining on a supplier’s list, and whether they have done this in the reporting period; and whether the organisation is a member of a payment code, and the name of the code.

The first report will be due 30 days after the end of the first six months of a business’ financial year, and the second reporting period will end at the same time as the business’ financial year, with the second report due 30 days afterwards. BEIS says that quarterly reporting as originally outlined was rejected as being too costly and difficult to implement.

It has also changed the requirements for publication, after consultation feedback suggested that a single online portal would be preferable as it would allow all records to be easily located. To fulfil the requirements of the duty, businesses will have to publish their report on a web based service provided by the government, which is currently under development. Businesses will be free to publish the information on their own website if they choose to do so, but this would be in addition to publishing through the service provided by the government.

Margot James, small business minister, said: ‘Unfair payment practices and unnecessary red tape hamper their ability to grow and have no place in an economy that works for all.

‘By shining a light on how large businesses pay their smaller suppliers, we want to empower small businesses and drive a real change in payment culture.’

As of June 2015, the overall level of late payment owed to small and medium sized businesses was reported as £26.8bn. A recent survey from the Federation of Small Businesses (FSB) said that, on average, 30% of payments are received late.

Mike Cherry, the FSB national chairman, said: ‘The comprehensive and regular duty to report is the first step to combat a business culture that feels like one where it is OK to pay small firms late. We need to see executive board level engagement and scrutiny of payment practices to deliver lasting cultural change.’

BEIS says it will publish guidance on how to comply with the duty to report early next year.

Duty to report on payment practices and performance: government response and draft regulations is here.