What Changed in October 2025

The government's new Prompt Payment Policy enforcement went live in October 2025, fundamentally changing how large companies must handle supplier payments. Unlike previous voluntary frameworks, these requirements carry serious legal consequences.

Mandatory Requirements for Large Companies

Companies meeting two of three criteria must comply:

  • £54M+ annual turnover
  • £27M+ balance sheet total
  • 250+ employees

Ensure Perfect Compliance

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Implementation Strategy for CFOs

Based on our analysis of 9,684 UK companies' compliance data, we've identified the most effective implementation approach for CFOs facing the October 2025 requirements.

Phase 1: Compliance Assessment (Month 1)

  • Audit current payment performance against 45-day average requirement
  • Identify process gaps in E-Invoicing and supply chain finance
  • Calculate potential penalties based on current non-compliance
  • Map government contracts at risk from spot check failures

The companies thriving post-October 2025 are those that transformed compliance from a burden into a competitive advantage through intelligent automation and strategic supplier relationship management.