Received this email from payontime - might be of interested to people here, particularly those on lengthy payment terms with public authorities. Linkies in the quoted text below. Apologies if this has already been posted/discussed.
From: Payontime <[email protected]>
Important changes to the Late Payment Legislation that affect you!
The Department for Business Innovation & Skills have finally launched a consultation on implementing the EU Directive 2011/EU which they say aims to strengthen the current late payment legislation in the UK. The closing date for the consultation is the 19th October 2012. The B.I.S. emphasise the main points of the recast legislation being:
Public authorities will be required to pay suppliers within 30 calendar days of receipt of an undisputed invoice
For business to business payments, the period for payment fixed in the contract should not exceed 60 days, unless otherwise expressly agreed and provided such terms are not grossly unfair
There is a minimum €40 (approximately £31) for compensation (which is less than the current three tiered compensation)
Suppliers will be able to claim additional costs for recovery such as using a professional debt collecting agency or instructing a lawyer.
However there are many more important changes not mentioned that could have a big effect on the effectiveness of the recast legislation.
The recast legislation will not be reviewed again until March 2018. Therefore it is important to read and understand the changes and how it will affect you as a business.
A new forum has been added where we welcome discussions about the proposed changes to the legislation.
The changes will be transposed on or before the 16th March 2013. Up to that date and beyond, we will report on the final decisions made by government and the best way to implement any changes into your terms of payment procedure.
Important changes to the Late Payment Legislation that affect you!
The Department for Business Innovation & Skills have finally launched a consultation on implementing the EU Directive 2011/EU which they say aims to strengthen the current late payment legislation in the UK. The closing date for the consultation is the 19th October 2012. The B.I.S. emphasise the main points of the recast legislation being:
Public authorities will be required to pay suppliers within 30 calendar days of receipt of an undisputed invoice
For business to business payments, the period for payment fixed in the contract should not exceed 60 days, unless otherwise expressly agreed and provided such terms are not grossly unfair
There is a minimum €40 (approximately £31) for compensation (which is less than the current three tiered compensation)
Suppliers will be able to claim additional costs for recovery such as using a professional debt collecting agency or instructing a lawyer.
However there are many more important changes not mentioned that could have a big effect on the effectiveness of the recast legislation.
The recast legislation will not be reviewed again until March 2018. Therefore it is important to read and understand the changes and how it will affect you as a business.
A new forum has been added where we welcome discussions about the proposed changes to the legislation.
The changes will be transposed on or before the 16th March 2013. Up to that date and beyond, we will report on the final decisions made by government and the best way to implement any changes into your terms of payment procedure.
