Late Payment of Commercial Debts (Interest) Act

[JerryB]

I deal with client (well, their accounts department) directly. I'm planning to unveil this particular legislation and what it means for them in real (money) terms and then see if that provokes them into paying what they owe. In future I'm going to make sure that they know that it's something that they'll have to bear in mind with any future payments that are late. I'm prepared for now to waive the interest charge on what they currently owe if they actually make an effort to pay me within a certain time (a week, perhaps) - if not, then they'll still owe me the money and I'll issue new invoices with the interest added. As you said, they're legally obliged to pay that interest, and so one way or the other they have to cough up (one hopes)

[ratewhore]

Thanks all - after figuring out the maths (never my strong point), I've worked out what's owed as interest. Now I have to see what happens when I mention this to the client...

Is this a direct contract then? You should inform your client that you are legally entitled to charge the fine and interest and they are legally obliged to pay it. Of course, if shedloads of work is in the balance then you do have to take a pragmatic approach.

I was successful against a large agency who tried to play the big fish small fish card...

[JerryB]

Thanks all - after figuring out the maths (never my strong point), I've worked out what's owed as interest. Now I have to see what happens when I mention this to the client...

[TheMonkey]

I do two rates now:

Pay within 14 days ... (daily rate x 1)
Pat after 14 days ... (daily rate x 1.1)

It's in my template contract. Noone ever reads the thing so they usually end up going "bugger!"

[Mustang]

Success

It's actually a daily interest at 8% over base rate. I sadly had to take a client to court on my first contract. The thread is out here on CUK if you search for it.

Send me a PM if you want more specific info. I actually won and got over £800 in interest.

[JerryB]

Thankyou all very much. I will have a look and then see if my rather poor math skills can figure out the figures...

[ratewhore]

It's basically a fine then interest charged at base rate (calculated twice yearly) + 8% (I think). Thats interest per year so you have to divide it by 365 for a per day interest charge...

[malvolio]

Never was too good on the detail, but start from

http://www.payontime.co.uk/legislati...tion_main.html

where all will be revealed. Don't forget to add some admin time as well as interest and penalties...

[JerryB]

Hi

I'm currently experiencing some problems being paid by a client, and wanted to ask about the interest one can charge using this act.

The question is: is the amount of interest chargeable on a daily basis, or cumulative for every 30 days that any payment is late? One payment I'm owed is 60 days late, another 30 days late, so I'm trying to figure out the amount I need to add as an interest charge.

Any help much appreciated!