Remember, remember the 1st of November

The Late Payment of Commercial Debts (Interest) Act came into force on 1st November 1998. Small businesses were allowed to charge interest on bills unpaid by large companies.

However, from 1st November 2000, small businesses (ie of less than 50 employees) will be within their rights to charge interest on unpaid bills from all businesses, large or small.

The clock starts on the interest additions after the due date for payment. The interest being claimed (simple interest at 8 percent over base) will appear on statements and cannot be struck off by the IBD.

Suppliers who aim to enforce their rights will probably include new wording on their invoices.