![]() ![]() Including this is a good way to encourage customers pay on time. We will exercise our statutory right to claim interest (at 8% over the Bank of England base rate) and compensation for debt recovery costs under the Late Payment legislation if we are not paid according to our agreed credit terms. ![]() GOV.UK provides details on how to calculate interest and what compensation you can add to it.Īn example of how you can say this in your terms and conditions and on your invoices is: This compensation (called a ‘debt recovery cost’) varies depending on how much you’re owed. You’re also entitled to add compensation to the interest charge. You’re still entitled to do it though, even if you haven’t said you will.Ī payment is considered to be ‘late’ after 30 days, unless you agreed something else with the customer. It’s good practice to state in your terms and conditions and on all your invoices that you’ll do this. The law on late payment means you can charge interest to businesses (but not consumers) as soon as their payment is late. Intuit accepts no responsibility for the accuracy, legality, or content on these sites.Make sure you keep a copy for yourself if you send an invoice on paper. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals. We provide third-party links as a convenience and for informational purposes only. Readers should verify statements before relying on them. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Accordingly, the information provided should not be relied upon as a substitute for independent research. does not have any responsibility for updating or revising any information presented herein. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Applicable laws may vary by state or locality. Additional information and exceptions may apply. This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business.
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