Interest on late payments

TALLY

Hi,

This is probably not the right forum to post this, but I thought if anyone is going to know it would be you guys. I mainly deal with the purchase side of things and so far have not had to pay any interest! Could anyone tell me what they charge customers in interest for late payments. What are the rules, does it depend on the bank rate at the time. Any advice would be appreciated.

Thanks.

GILL

Interest Charges

www.payontime.co.uk/calculator/statutory.html

Interest is based on base rate, reviewed every six months, plus 8%. Admin charges can also be charged based on the amount outstanding.

Hope the above link is helpful

TALLY

Thanks for reply, do you know what the 8% represents?

stuart-elmes

The 8% is a figure set by government in the legislation. Businesses have a statutory right to charge this amount over a reference rate (the Bank of England base rate on certain dates). You can also add compensation for your recovery costs.

more information is here:

http://www.mycreditcontrollers.co.uk/Articles/2015_01_Interest_on_Overdue_Payments.html