The Big Day has arrived - new legislation

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8 years 2 months ago #897 by ashley smith
The Government published its response today to the consultation last September and will be placing the following before Parliment on 22nd February.

The existing 1998 act is to be recast.
The default terms remain at 30 days
The recast to apply to contracts after 16th March 2013.

And finally

"We will retain the current three tier charge of £40, £70 or £100, depending on the size of the debt, plus any additional reasonable costs."

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8 years 2 months ago #899 by David J
Thank you Ashley

here is a link to the amendments to the current late payment legislation.

legislation.data.gov.uk/uksi/2013/395/made/data.htm?wrap=true

Regards

David

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8 years 2 months ago #901 by info@bostico.co.uk
great news...i guess. So nothing has changed, has it?

Andreea Bostan

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8 years 2 months ago #906 by David J
Hi Andreea

Not much. Compared to the rest of the EU we already met the requirements in some areas. However the EU directive laid down the basics. UK Gov had an opportunity to improve the legislation to help small businesses but failed to do anything. From what I can see, big businesses will still command lengthy payment terms at the expense of small business. Gov's answer to that was to introduce the supply chain finance scheme. Hoping that we are all too stupid to see through that!

However the current legislation is quite good (despite what many think) and the addition of the public sector paying in 30 days (unless otherwise agreed), and the fact that you can claim for extra fees if the compensation does not cover your expenses when recovering late payment are positive moves.

David

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