[cml]

We ran a contract for a large company for some years that came to an end just over a year ago.  As we took on more work at their request payments became longer than a month in arrears.  We experience a number of excuses as to why they were not paid such as invoices not received, already paid when they were not paid, sent for payment and dont know what happened etc.,  the list goes on.

As stressed in previous posts about the importance of a contract or terms of trading becomes very important in such circumstances.  Our terms relied on a contractual term that states a % charged each month our invoices remains unpaid. Given the constant run around we slapped on our charges each month for just over a year.  They fought hard not to pay it but we stuck with it and did not give in.  They tried to rely on the statutory interest charged at 8% PA for late payments.  Our argument was that our contract terms overrode this and was prepared to go to court on this. 

After months of negotiations and chasing and recalculations I am happy to say that a nice check arrived and paid up their account in full  .  HEADACHES AND PERSISTENCE won the day.  If your right your just right, never give up and chase what is rightfully yours.  After all your earn't it didn't you?

[Blast Away]

I'm interested in the wording and legality of the 8%. I need to start doing it. Got some right p takers. Got one for £1500 6 week past the 30 days now. Excuses excuses. ''I'll look into it for you''...''I'm not in until such-a-day to check on it''...''I'm only on 2 day weeks''...

They'll see their a**e when I walk into the office on Monday.

[cml]

You are able to claim late payment interest and compensation for payments later than 30 days.  Interest can be claimed up to six years after payment due.  Even if this is not in your contract terms it is a statutory right to charge interest that could incur a daily charge.

In our case we relied on a contractual terms which was higher than the statutory rate.  But if you do not have a contract or trading terms expressing how much you would charge for late payments this does not stop you from claiming your statutory rights.

Good luck on Monday.  £1500 is a lot of money. DON'T GIVE UP.  If not luck on Monday send them an invoice stating the works done the statutory clause in which your rely and the amount of interest now charged.  The law is on your side here.

[Matt Gibson]

Lee, check my previous posts, I asked a similar question a while ago and someone posted a link to the late payment gov website with the actual proper legal wording.

I'm having an opposite problem. Customers paying me too much!! Got paid VAT on a job an I'm no registered!!

[Blast Away]

So can I make up any amount to charge if late if I put it in the terms when the invoice is first sent?

[mike roberts]

So can I make up any amount to charge if late if I put it in the terms when the invoice is first sent?

Er no.

search late payment site will explain everything...
https://payontime.co.uk/ They have a std text to add to your terms but you dont need to show it as its law....

We have same prob, this is our biggest headache and whats holding us back as a company cashflow - same for every small company - caused by late payments - We are owed so much xmas has been cancelled Always happens this time of yr next few wks gets even worse - hols

[Deep Cleaning Solutions]

"You are able to claim late payment interest and compensation for payments later than 30 days.  Interest can be claimed up to six years after payment due.  Even if this is not in your contract terms it is a statutory right to charge interest that could incur a daily charge."

Does this apply for one off cleans, i have a council job payment outstanding that's well over my 30 day terms stated on the invoice. Cheers.

[cml]

The answer is YES to the above post.  You can claim for debts that remains unpaid and undisputed.  I have assumed that your are not relying on a contractual rate that you will charge for late payments therefore you will be entitled to the statutory rate.  A post above has a valuable link that you could read in regards to this. 

LA's are very bad at paying on time and will take advantage of smaller companies where they think they do not have the resources to challenge them. 
You may want to drop them a line with another invoice for these charges and remember to include the legislation that you rely on so that they know it is legal.  It should serve as a deterant but some companies are ignorant to this.  This is because a lot of small companies do not know their rights or do not want to upset their clients.  Nonetheless you need to demonstrate that you are professional and have your fingers on the pulse when it comes to claiming your money.

[Deep Cleaning Solutions]

That's a great help cml, thanks.

[Blast Away]

That's a great help cml, thanks.

Seconded. Thanks. 

[evil genius]

i have outstanding payment, not a lot but outstanding none the less.
when i rang about invoice addy, details etc i was told payment would be14days from invoice.
i made a school boy error and forgot to add a 'paymet must be made with ....'
does this affect me and stop me from claiming the statutory rate intrest?
its now 6 weeks since the invoice date.

off to check out the page linked, thanks

[cml]

Hi, in answer to the above post.  As long as the payment is late and over your agreed terms you have a claim (essentially 30 days)  and can claim this amount up to six years.  Don't be afraid to ask for your money.  They had your service and are happy with it, it is performed in the manner they requested now pay.  Statutory rate still applies after 30 days. 

Even better if you have terms saying interest will be charged after 14 days then in such a case you will be relying on a contractual term.

Be careful if you are not exercising a contractural term use the statutory right but you cannot use both at the same time.

Hope this helps

[Kev Martin]

This is an interesting thread.  So are we saying a company owes me a £1000 for example since July 2011 and my terms are strictly 30 days.  Do I apply a charge of £85 or is it Pro Rata?  Can someone explain this a little better?

Kev Martin

[BDCS]

Kevin, everything is here. It can only be used on commercial customers. We add £40 per invoice for our time chasing plus the interest - it works as just as soon as they get the letter detailing the increased charges they pay the original invoice and deny getting the  charges letter

https://payontime.co.uk/

[Kev Martin]

80% of my clients are commercial and believe me it gets boring chasing them.  However, this will probably add weight to my letters.  Thanks Guys!

Kev

[Denise l]

Thanks for the info. Tried it today and guess what? Had a reply to my email within the hour. Certainly put the wikkies up them!

Denise