Could anyone help?

Harry

As James has highlighted this is the right of the supplier, in fact Business Link in its publication www.berr.gov.uk/files/file37581.pdf states that a supplier has SIX years (five in Scotland) to make a claim for interest and even advises that Suppliers may choose to claim interest AFTER they cease to be a supplier and states

'Purchasers who wish to avoid future claims for interest should pay thier bills on time.'

The six year period is derived from case law and The Limitation Act 1980.

Thanks for your replies James.

I would agree, it does look like they have a good chance of winning.

I have convinced my boss to join payontime.co.uk
- its got to be a good thing for us and our suppliers.

Harry wrote:

They say it is a statutory entitlement.

Can they do that, do we have to pay by law?

Yes they can and as long as the charges are correct they are legally due.

As others have said negotiation may be possible, but you would need to talk to your supplier :)