[gwrightson]

Does anybody know the legalities regarding the adding of interest to a bill?

Such as , how much can be added? From what date ? etc,  etc.

I have a slow payer , I should say a non payer and after numerous e mails, reminders and phone calls that get ignored with excuses like . She is out at the moment, Not in today, will phone you back and the like.

The amount is for £1,100 , but I now wish to start adding .
Geoff

[Joe H]

What was in your originally  terms?

This may help
http://www.theanswerbank.co.uk/thread/?ctgalias=Business-and-Finance/Business&question_id=634269

[gwrightson]

My terms on the invoice Joe, were Payment within 28 days unless prieviously agreed otherwise,

a discount of 5% is offered if payment in full is recieved within 7 days.

I will take a look at your link.

geoff

[Peter Sweeney]

Geoff,

You can add 0.0022 % per day. This is what the courts allow for.

Pete

[gwrightson]

Thanks pete,

Thats what I was looking for   some people have been telling me i can add what i like plus a £70 charge!!!!!!   0.0022% per day     doesnt seem much  ,

never mind it may do the trick.

geoff

[Peter Sweeney]

Know what you mean Geoff but thats still £217.80 extra on 90 days. Might be enough if you could warn that you are entitled to that if not paid asap.

Pete

[Joe H]

The link I found is interesting, Geoff.
Compensation basically is 8% + the bank base rate (listed as .5%)
However, it does say, on a link from my link, that this is only for business to business transactions and not individuals.
With the amount being £1100 I presume this is a business transaction (maybe not).
Something in there also saying you may also be liable for "compensation" of £70 as the total is over £1000 (£40 if up to £1000).

[gwrightson]

Yes it is a business to business Joe,

Pete, how did you arrive at £217.80 ?   I am assuming that the interest goes on daily is this correct?

Geoff

[GWCS]

You may find these links interesting

http://www.payontime.co.uk/index.html

http://www.thomashiggins.com/index.html

http://www.businesslink.gov.uk/bdotg/action/layer?r.s=b&r.l1=1073858790&r.lc=en&r.l3=1074002362&r.l2=1074453392&topicId=1074453392&r.i=1080465779&r.t=BLTTOOL

[mk1]

PAYMENT IN FULL IS DUE WITHIN 14 DAYS FROM INVOICE DATE. WE RESERVE THE RIGHT TO CLAIM STATUTORY INTEREST AT 8 % ABOVE THE BANK OF ENGLAND BASE RATE AT THE DATE THE DEBT BECOMES OVERDUE IN ACCORDANCE WITH THE LATE PAYMENT OF COMMERCIAL DEBTS. (INTEREST ACT 1998)


thats on all my invoices and used

[gwrightson]

I sent a mail a little earlier today explaining that I would be adding interest and have now received payment in full via BACS.

Geoff

[GWCS]

I sent a mail a little earlier today explaining that I would be adding interest and have now received payment in full via BACS.

Geoff

Geoff, learn from this, make sure your payment terms are always displayed. And look into how to prevent this via the links i given.

It amazing how quick people pay up when you advise late payments fee's will be added due to late payment and legal action if full payment and late fees are not paid within a set date...

[clinton]

Going to do this myself and make sure the terms are clear to see just in case as its one of these things that niggle you :

[Peter Sweeney]

Yes Geoff, thats the daily interest amount

[robert meldrum]

Compounding !!!!!!!!!!!!