Please find below a detailed explanation of the fees payable for late payment of invoices:
Late Payment Compensation
Under the Late Payment of Commercial Debts (Interest) Act 1998, companies are entitled to claim a fixed amount of compensation based on the value of the invoice, pursuant to section 5A, as per the table below:
|up to £999.99||£40 per invoice|
|£1,000 to £9,999.99||£70 per invoice|
|£10,000 and over||£100 per invoice|
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.
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. We levy an admin fee of £39 + VAT* which reflects the difference between the statutory amount of compensation and our collection charges. Our fees for collection are as per the table below:
|Invoice Value||Collection Fee|
|up to £999.99||£79 per invoice|
|£1,000 to £9,999.99||£109 per invoice|
|£10,000 and over||£139 per invoice|
Should it be neccessary to send additional correspondence, in the event of non-payment, this will be charged at the rate of £35 + VAT per email (up to a maximum of £70 + VAT).
*Our Administration Fee is subject to VAT although VAT is not chargeable on compensation or interest.