THE Better Payment Practice Group has announced the interest rates businesses can expect on overdue debts.
Interest for companies wishing to apply the late payment legislation will be 12.5 per cent for July 1 to December 31 this year. From January 1 to June 30, the rate was 11.75 per cent.
The late payment legislation provides businesses with a statutory right to claim interest and compensation on overdue commercial debts.
The interest rate is set twice a year and is calculated by adding 8 per cent to the reference rate, which is the Bank of England base rate, on June 30 and December 31.
Statutory interest on an overdue invoice can be determined by using the online calculator at the BPPG's website, www.payontime.co.uk
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article