Late Payment of Commercial Debts (Interest) Act 1998
Late Payment of Commercial Debts Regulations 2002
Late Payment of Commercial Debts Regulations 2013
The statutory compensation entitlement varies depending on the value of each overdue payment/debt:
Value of unpaid debt
Sum to be paid
|Up to £999.99||£40.00|
|£1,000.00 to £9,999.99||£70.00|
|£10,000.00 or more||£100.00|
Compensation Entitlement is not subject to VAT.
These statutory charges do not require a County Court Judgment in order to be applied to a debt. If payment is late, then the above charges are applicable. We calculate the relevant charges per overdue payment and add the sum to the amount we seek from the debtor. The customer does not need to be advised in advance of these charges are they are calculated in accordance with an Act of Parliament.