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3 years 4 months ago #2280 by abacuspcservices
Hi

I've been using the guidance on here and have been using 30 day payment terms since the start of my business in 2009. When sending an invoice, I always quote the 30 day terms and, if payment has not been received by then, a reminder letter goes out stating that compensation and interest will be accruing from the date of the reminder, up until when the payment is made.

With reference to private business to private business transactions, it is mentioned that this is now 60 days, so my question is, am I wrong in using the legislation calculations based on my 30 day terms?

Kind regards

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3 years 4 months ago #2282 by j.salmon@cpa.co.uk
Hi,

Where are you seeing the reference to 60 days?

As far as I am aware it is still a default of 30 days terms in the absence of a contractual agreement to the contrary.

James

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3 years 4 months ago #2284 by abacuspcservices
Hi James

Thanks for your reply.

I think that I may have misunderstood the following :-

"On the 16th March 2013. Further amendments were made.

The public sector must pay within 30 days and private sector within 60 days."

I took it as meaning that the fees and interest for my transactions couldn't be made until after 60 days.

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3 years 4 months ago #2285 by j.salmon@cpa.co.uk
Sorry, yes that 60 days is a maximum.

Payment terms should not exceed 60 days

"For business to business payments, the period for payment fixed in the contract should not exceed 60 days, unless otherwise expressly agreed and provided such terms are not grossly unfair."

30 days are still the default assumption if nothing is set contractually.

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