Facebook Twitter LinkedIn YouTube
East Midlands Chamber News

Late-payment interest remains fixed

Under the Late Payment of Commercial Debts (Interest) Act 1998, businesses can charge other firms interest on late payments. The amount which can be charged is set for six-month periods and is calculated by adding eight per cent to the Bank of England base rate on 30 June and 31 December of each year.The two six-month periods when charges are applicable run from: 1 July to 31 December and 1 January to 30 June.The rate that can be charged from 1 July will remain at 12.75 per cent because the base rate is currently 4.75 per cent.Businesses that want to calculate interest on an overdue invoice can do so using the online calculator at www.payontime.co.uk.The website also contains a range of credit-management advice and information to help businesses prevent and overcome late payment of commercial invoices. (c) Business Hotline Publications Ltd 2005