BPPG announces hold in interest rate for commercial late payments
The Better Payment Practice Group (BPPG) advises businesses wishing to apply the late payment legislation that the interest rate for payments, which become overdue between 1st July and 31st December 2006 will be 12.5%. This remains unchanged from the previous period, 1st January to 30th June 2006.

The late payment legislation provides businesses with a statutory right to claim interest and compensation on overdue commercial debts. For contracts dated on or after 7th August 2002, the late payment interest rate is set twice a year by adding 8% to the reference rate, which is the Bank of England base rate on 30th June and 31st December. This interest rate is applicable for payments, which become overdue in the ensuing six-month periods, i.e. between 1st July and 31st December and 1st January and 30th June respectively.

Statutory interest on an overdue invoice can be determined by using the online calculator. This website also contains a wide range of credit management advice and information to help businesses prevent and overcome late payment of commercial invoices, plus a Guide to the UK’s late payment legislation.

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