Late payments can negatively impact your business, leading to cashflow issues, stress, and a drain on your resources. That’s why it’s critical that businesses understand what assistance is available to them under UK legislation.
These regulations protect traders working with public contracting authorities, ensuring they receive fair compensation for each late payment they receive. Unfortunately, many GB businesses simply aren’t aware of these safeguarding laws or don’t have the time to navigate complex claims processes.
That’s where we come in.
latepaymentaction.comis the UK’s leading public sector late claims specialist. Our team of industry experts have come up with a simple, four-step claims process to help your business claim the money it deserves without the hassle. Plus, with our no-win, no-fee approach, you can claim late payment compensation with peace of mind.
Claiming late payment compensation is your right and can protect your business from losses as a result of delayed income as well as future late payments. As such, working with specialists like latepaymentaction.com can protect your business and help you get the compensation you deserve.
We’ve answered the most common questions about claiming late payment compensation in the UK.
What is a late compensation claim?
A late payment compensation claim gives UK businesses the right to obtain when they do not receive timely payments from contractors, such as the public sector. This process is regulated by the Late Payment of Commercial Debts (Interest) Act 1998 and the EU Late Payment Directive.
What types of businesses can make a late payment compensation claim?
All UK businesses, from sole proprietors to LLCs, can claim compensation in the event of late payment. However, this legislation does not cover personal debt.
What if a client has more than one overdue invoice?
Your business can claim compensation for every invoice that has been paid late, provided it’s for a separate order of goods and services. You can add these amounts together and make one late payment compensation claim covering all costs. However, make sure you calculate each claim individually first and break it down for your client. This makes it clear which claim relates to which invoice.
Can I claim late payment compensation if I don’t have a legal contract with the client?
Yes, making a late payment claim is still possible even if you don’t have a formal contract with the client. However, this will be a more complex process. We recommend agreeing to terms up-front and having a formal contract with all of the payment terms in writing.
When do I consider a payment late under UK law?
Generally speaking, a payment is considered late when it exceeds the thirty-day rule. This rule states that all invoices must be paid within thirty days of receiving an undisputed invoice. However, it’s important to note that there are some circumstances where this rule might not apply. For instance, if you have a contract with the client that states a longer payment window.
How can I calculate how much late payment compensation I am owed?
The easiest way to calculate how much compensation you’re entitled to is by using our free Claim Calculator.
latepaymentaction.com is a trading style of Nobu Statutory Ltd, a private limited company incorporated in England and Wales, whose registered number is 14408762, and registered address is Quarry Cottage, Swincliffe Top, Hampsthwaite, Harrogate, HG3 2HY.