Payment of £40. £70, or £100

I have in my Terms and Conditions a provision that if payment is late beyond the agreed period, interest shall be payable in accordance with The Late Payment etc Act. A client has said that this stipulation means that a substantial remedy for late payment was in place and therefore the £40/70/100 is not payable.

I shall be grateful to hear if that is the case.

Thank you.

I'm also interested in this issue. Can anybody help me in this tough situation?

Thanks for this.

I have now amended my Terms & Conditions as follows:-

Payment of each invoice is due no later than 28 days after the date of the invoice. If payment is made after this date:-
• interest is payable in accordance with the Late Payment of Commercial Debts (Interest) Act 1998 as amended for every day the amount remains outstanding together with
• the appropriate sum of “Compensation arising out of late payment” as set out in the Act.

Although it appears this is not necessary I shall continue to include it as it avoids any argument.