Please find below a detailed explanation of the fees payable for late payment of invoices:
Late Payment Charges
Under the Late Payment of Commercial Debts (Interest) Act 1998, companies are entitled to claim a fixed amount based on the value of the invoice, pursuant to section 5A, as per the table below:
| Invoice Value | Compensation |
|---|---|
| up to £999.99 | £40 per invoice |
| £1,000 to £9,999.99 | £70 per invoice |
| £10,000 and over | £100 per invoice |
Interest
Under the terms of the Act, interest can be claimed at 8% above the Bank of England base rate, calculated on the date the invoice became overdue, pursuant to section 4.
Administration Fees
For orders placed after 16 March 2013, the Act further allows companies to claim their ‘reasonable costs’ for collection. This allows for a claim to cover the difference between the statutory compensation amount and the actual cost of recovery. The administration fee of £49 + VAT reflects the difference between the statutory amount and our collection charges. Our initial fees for collection are as per the table below:
| Invoice Value | Collection Fee |
|---|---|
| up to £999.99 | £89 per invoice |
| £1,000 to £9,999.99 | £119 per invoice |
| £10,000 and over | £149 per invoice |
In the event of non-payment, should further efforts be neccessary to recover the debt, such as sending further correspondence or telephone calls, we may levy up to a maximum of 2 additional administration fees, of £35 + VAT, for each invoice.
VAT is not applicable to the compensation and interest elements of the charges.