Regulating the late payment of commercial debts in the UK
Prompt payment is critical to the cash flow of every business. The Late Payment of Commercial Debts (Interest) Act 1998 (the ‘Act’) therefore implies a term into contracts supplying goods/services between businesses (including public authorities), that “qualifying debts” carry simple interest at a punitive rate (“statutory interest”).
Statutory interest starts to accrue, if payment has not been received, on the day after the “Relevant Day” (as described below) and is calculated as eight per cent above the Bank of England base rate (set at a high rate so as to deter non-payment). As such it is particularly important for the purchasing party to understand exactly when the Relevant Day falls.
This spring, two regulations (The Late Payment of Commercial Debts Regulations 2013 and The Late Payment of Commercial Debts (No. 2) Regulations 2013) have amended the Act, and in particular the way in which the Relevant Day is to be calculated.
If you are registered and logged in to the site, click on the link below to read the rest of the briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
Health Alert — Julia Clare v Australian Community Pharmacy Authority; Dr Reid v Medical Council of NSW; and more
DLA Piper has released the 22 December 2014 issue of its Health Alert, which focuses on judgments, legislation and reports in the health sector.
The European Court of Justice (CJEU) has handed down a landmark judgment concerning the patentability of stem cells in Europe.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.