The coming into force of the relevant part of the legislation, see the table below. What about contractual rights to interest on late payment? Contained on this web site, but no responsibility is accepted for any financial or other loss or damage that may result from its use. Download a guide to late- payment legislation from the better payment practice campaign bppc website pdf. Interest starts to run on the next day. Make sure invoices include an agreed payment date. What is the rate of interest?

Contracts to which act applies. The late payment of commercial debts regulations 200. Confer a contractual right to interest that is not a substantial remedy for late payment of the debt, or. All businesses, irrespective of size, and public sector bodies can claim statutory interest for the late payment of commercial debts. How is a claim for interest made?

Section 6 provides the full definition of an sme for the purposes of this legislation. This default period does not constitute a statutory credit period. The statutory right to claim interest is not compulsory. Pay off your mortgage. The rate of interest was set at the official discount rate plus a percentage, currently 8%. How much compensation am i allowed?A remedy for the late payment of the debt shall be regarded as a substantial remedy unless.

Part ii: contractual interest on late payment. Debt recovery costs and unfair contract terms. P art i s tatutory i nterest on q ualifying d ebts section 1. Only a representative body may apply to the high court under this regulation.

Unless the overall remedy for late payment of the debt is a substantial remedy. If you decide to start charging debtors interest, you'll need to adapt your credit control system. It is not compulsory to use the late payment legislation. When does the interest stop running?

Businesses may also claim interest after they have stopped supplying a purchaser. If another business pays you later than agreed, you have the legal right to claim interest on the overdue amount. The rate in force on 30 june is used from 1 july to 31 december. What happens if the contract requires advance payment s ? These regulations implement directive 2000/35/ec of the european parliament and of the council of 29th june 2000 on combating late payment in commercial transactions. The morgage. Part ii: contractual interest on late payment. The table below provides a brief summary of how the legislation worked prior to 7 august 2002.

Receivers or liquidators of a business may pursue its purchasers for interest on late payment going back over this period. The 30 day default period starts running from the later of two actions. Tax credits 2006. Find out what other businesses in your industry do - it's probably best not to charge interest if your competitors don't.

However, it must be stressed that the courts will look at the issue of a substantial remedy for late payment on a case- by- case basis. Either has a turnover of less than eur 40 million or an annual balance sheet total not exceeding eur 27 million; and is independent. However, evidence shows that more small businesses are stating at the time the contract is made that they will exercise their right if payment is late. Research and statistics about late payment.