The Late Payment of Commercial Debts (Interest) Act 1998 and Late Payment of Commercial Debts Regulations 2002 and 2013 give businesses the statutory right to claim interest on late payments from other businesses.
- The delivery of the goods or the performance of the service, or
- The day the purchaser receives notice of the debt.
The Amended Late Payment Regulations 2013
The late payment regulations were amended for 2013 in the following ways:
- Debt owed up to £999.99 – £40 charge
- Debt owed £1000 – £9,999 – £70 charge
- Debt owed £10,000 or more – £100 charge
- Amount owed, including the total interest accrued at date of the letter.
- The continuing daily interest rate.
- The original invoice details.
- Full name and address to whom payment should be made.
- Method of payment.
- It will cover the supplier for losses incurred due to late payment or act as a deterrent.
- It is reasonable to let the contractual compensation replace the provisions of the Act.