Legislation dating back 15 years to allow business to business suppliers of goods and services to claim interest on late payment of invoices has been updated this month.
The new Regulations retain both the interest rate of 8% above the Bank of England base rate and also the ability to claim compensation for “recovery costs”, but have also introduced implied payment terms of 60 days in the absence of fair alternative express terms.Quite surprisingly, the Regulations have now introduced strict payment terms of 30 days by public authorities, again, in the absence of fair alternative terms.
The changes, which became effective on 16 March and are aimed at making the pursuing of payment across the EU a simpler process, are expected to make an extra £150 billion available to businesses in Europe.
For more information in respect of the recovery of commercial debts please contact Litigation Partner, David Tear, on: 01535 613 668 / email@example.com
Partner, Litigation/Dispute Resolution