Debt collection - parkers solicitors stockport manchester 0161 477 9451
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Debt collection

Businesses are entitled to a compensation* payment and interest (currently at 8% above Bank of England base rate) for each business debt not paid on “the day after the relevant date”, this statutory entitlement is independent of the subsequent payment of the principle amount of the debt.

Additional compensation is recoverable** to indemnify a “supplier” for the expense of appointing bookkeepers, accountants and lawyers to assist with the calculation and recovery of the late payment compensation.

 

The fixed sums for compensation are:

For invoices up to the value of £1,000 – £40

For invoices over £1,000 and less than £10,000 – £70

For invoices of £10,000 or more – £100

The invoice does not need to be unpaid to make a claim; it only needs to have been paid late. The ‘supplier’ has 6 years from the relevant date to issue a claim at Court.