If you're responsible for financial compliance at a company with £54M+ turnover, these changes will impact your operations, your reporting, and potentially your freedom.

What Changes in October 2025

New Requirements

Faster Average Payment Requirements: Suppliers bidding for government contracts above £5M annually must demonstrate they pay invoices within an average of 45 days or fewer (reduced from the current 55 days).

95% Within 60 Days Standard: The requirement to pay at least 95% of invoices within 60 days continues, but the average payment time becomes more stringent.

Mandatory Compliance Reporting: Companies must continue publishing payment performance reports every six months, now demonstrating compliance with the tighter 45-day average requirement.

Spot Check Requirements: Government departments will conduct regular spot checks on contracts worth £5M+ annually to ensure the new 45-day average and 95% within 60 days standards are being met across supply chains.

The Criminal Penalty Reality

Here's what many CFOs don't realize: under current Late Payment regulations, responsible directors at non-compliant companies already face criminal prosecution, including unlimited fines and criminal records.

The October 2025 changes strengthen enforcement and expand scope. CFOs who thought they could manage compliance manually are about to discover the hard way that spreadsheets don't scale.

Why Manual Processes Fail

  • Average Payment Tracking: Manually calculating average payment times across hundreds or thousands of invoices monthly is complex and error-prone. The 45-day average requirement demands precise measurement.
  • 95% Compliance Monitoring: Tracking that 95% of invoices are paid within 60 days requires automated systems that can monitor every invoice and generate accurate compliance percentages.
  • Reporting Complexity: Six-monthly compliance reporting requires real-time data tracking and automated report generation. Excel can't deliver government-grade compliance reporting.
  • Supply Chain Visibility: Spot checks will examine whether your entire supply chain meets both the 95% within 60 days and 45-day average requirements.

What Perfect Compliance Looks Like

  • Automated Average Calculation: Real-time tracking of average payment times to ensure compliance with the 45-day requirement.
  • 95% Performance Monitoring: Automated monitoring showing exactly what percentage of invoices are paid within the 60-day deadline.
  • Automated Government Reporting: Six-monthly payment performance reports generated automatically, demonstrating compliance with both requirements.
  • Supply Chain Transparency: Complete visibility into payment performance across all tiers of your supply chain.

The PAIDD Solution

PAIDD eliminates compliance risk completely through automated e-invoicing built specifically for UK Prompt Payment Policy requirements.

  • Zero Compliance Risk: Automated 30-day tracking ensures perfect compliance with October 2025 requirements.
  • Automated Reporting: Government-ready compliance reports generated automatically every six months.
  • Supply Chain Visibility: Real-time tracking of payment performance across your entire supplier network.
  • Criminal Penalty Protection: Complete audit trail and automated compliance documentation protects CFOs from personal liability.

Beyond Compliance: The ROI Opportunity

Smart CFOs don't just achieve compliance. They turn compliance requirements into competitive advantage.

PAIDD's e-invoicing platform captures early payment discounts averaging 1.75%, delivering guaranteed 5x ROI within 90 days while ensuring perfect compliance.

  • SAVE TIME: Eliminate 39 minutes of manual processing per invoice
  • SAVE MONEY: Capture early payment discounts worth thousands annually
  • SAVE RISK: Zero compliance risk with automated government reporting

Don't Risk Criminal Penalties

Book a compliance consultation and discover how PAIDD eliminates October 2025 compliance risk while delivering guaranteed 5x ROI

Calculate My ROI

Don't Wait Until September 2025

CFOs who wait until the last minute will face three problems:

  • Implementation Time: Complex supply chain integration takes months, not weeks
  • Staff Training: Teams need time to adapt to new automated processes
  • System Testing: Compliance systems must be tested and validated before the deadline

The Bottom Line

October 2025 isn't just another compliance deadline. It's the moment when manual payment processes become legally inadequate.

CFOs who embrace automated e-invoicing compliance will gain competitive advantage. Those who stick with manual processes risk criminal penalties and business disruption.

The deadline is fixed. Your compliance strategy shouldn't be.