Support Payontime

  1. Forum
  3. Pay on time supporter forums
  5. The late payment of commercial debts (interest) Act.
  7. Three questions on applying the Late Payment Legislation
× Welcome to the late payment of commercial debts (interest) act. Forum!

Post questions here regarding the use of the Late Payment Legislation

Three questions on applying the Late Payment Legislation

More
12 years 3 months ago - 12 years 3 months ago #757 by wordwright@sfep.net
Three questions on applying the Late Payment Legislation was created by wordwright@sfep.net
I hope this specific enquiry has not already been raised: if it has I apologise:

The background is that I have been struggling to get payment from the government (Department for Education) with overdue invoices amounting to over £19,000.

The invoices are slowly being paid in dribs and drabs since I contacted my MP and a solicitor, but I now want to charge interest and am not sure how to go about it.

1. When I issue an invoice for payment of interest, do I add VAT?

2. Is the debtor obliged to pay the compensation charge? My solicitor implied that only the interest was statutory, not compensation, which he says they may fight in the courts.

3. One of the invoices has been part-paid because they are still buggering about with their own paperwork. How do I calculate interest on an invoice that is only partly paid? There is no dispute over the amount, just inefficiency on their part.

Many thanks for your help.

Deborah

Please Log in or Create an account to join the conversation.

More
12 years 3 months ago #758 by David J
Replied by David J on topic Re: Three questions on applying the Late Payment Legislation
Hello Deborah

There is never a need to apologise!

For question 1:
You do not raise an invoice, you make a claim for interest and compensation. VAT is not added to your claim.

You make the claim on your full invoice amount including any VAT. For example, if your Invoice was for £1000.00 plus VAT of £200.00, your claim is based on £1200.00

For question 2:
Compensation can be added to each claim. Compensation is part of the statute legislation.

For question 3:
Well you could argue that interest and compensation should be calculated on the full invoice amount before part payment. Or you could just calculate on the balance.

The interest and compensation can be added to each invoice.

You can calculate interest using the basic calculator which is free.

The standard calculator which is £7.00 plus VAT per year but gives you more information such as amount of days late, daily interest rate and retrospective claims.

Or the advanced calculator which starts at £5.00 plus VAT. This will generate the late payment claims automatically, track the debt, allow for part payments with appropriate letters and more.

You may also like to make a complaint via the governments mystery shopper scheme.
Have a read through this page from the cabinet office about the mystery shopper scheme . I would have thought that the Department for education would come under the scheme.

I hope that helps!

David

Please Log in or Create an account to join the conversation.

  1. Forum
  3. Pay on time supporter forums
  5. The late payment of commercial debts (interest) Act.
  7. Three questions on applying the Late Payment Legislation
Time to create page: 0.117 seconds