BPPG announces new interest rate for commercial payments
The Better Payment Practice Group (BPPG) advises businesses that the full interest rate for companies wishing to apply the late payment legislation will be 12.5% for the period 1st January to 30th June 2006. For the previous period (1st July to 31st December 2005) the rate was 12.75%.

The late payment legislation provides businesses with a statutory right to claim interest and compensation on overdue commercial debts.

The late payment interest rate is set twice a year and is calculated 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 the ensuing six-month periods, i.e. 1st July to 31st December and 1st January to 30th June respectively.

Statutory interest on an overdue invoice can be determined by using our online calculator.

You can keep up to date with the Better Payment Practice Campaign by sending us an email