New legislation to tackle late payments is currently going through parliament.
The Bill will introduce:
- a new 60-day cap on payment terms for larger firms paying smaller suppliers
- new mandatory interest on late payments, with a requirement for all commercial contracts to include statutory interest set at 8% above the Bank of England base rate
- a time limit for raising disputes on payments
- action to ban the practice of withholding retention payments under construction contracts, to prevent small firms losing retentions to insolvency or non-payment
- significant new powers for the Small Business Commissioner to investigate poor payment practices; adjudicate disputes outside the courts; and fine the worst offenders.
Provisions are intended to apply UK-wide, though this will require regulatory alignment in Scotland, Wales and Northern Ireland.
Payment issues can be incredibly disruptive, so please contact us for help on 01905 777600 or hello@ormerodrutter.co.uk.
