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Which is it, 30 or 60 days from date of invoice?

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10 months 2 weeks ago - 10 months 2 weeks ago #3719 by Momentum
Hi
I am confused about when a debt was due if no terms are stated on the invoice
(I have always believed it to be 30 days for the date of invoice). However, on the page

payontime.co.uk/the-late-payment-legislation-provides-interest-and-debt-recovery-costs#arrangements

It states at the top of the page

" From 16 march 2013 the late payment legislation was amended:

Private sector must pay within 60 days;
Public sector must pay within 30 days;
"
Does that mean that private companies NOW have 60 days from the date of invoice?

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10 months 2 weeks ago #3723 by j.salmon@cpa.co.uk
Hi

In the absence of terms, the legislation says the invoice is due within 30 days of the invoice being received (not sent or the date of the document).

Regarding this:-

" From 16 march 2013 the late payment legislation was amended:

Private sector must pay within 60 days;
Public sector must pay within 30 days;

This was referring to the terms to the terms that can be agreed and still be viewed as valid.

i.e. if no term have been agreed, it's 30 days, but if terms are agreed there is a maximum of 60 days. So if a big supermarket tries to impose 90 days terms on its suppliers, the courts should say that unless there is a demonstrable reason why those terms are needed for that transaction then actually the invoice was actually due in 60 days, regardless of the terms.

Hope that answers your query

James

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10 months 2 weeks ago #3726 by Momentum
Hi, James
Thanks for the quick response - that has certainly answered my question.

Dave

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10 months 2 weeks ago #3727 by j.salmon@cpa.co.uk

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