TERMS AND CONDITIONS
Fee Structure and Invoicing
Last updated: February 14, 2019
- Please refer to your individual offer and agreement.
- Unless agreed otherwise, payment is due within 30 days of the invoice date.
- We only accept bank transfer and no longer accept cheques.
- Any errors on the invoice must be reported within 2 days of receipt of the invoice. Any errors reported after 2 days can and will be amended, however, we will not change the original invoice date.
- All businesses have a right to charge other business customers and public sector organisations interest on late payments.
- Unless agreed otherwise, the law states that payment must be received “within 30 days of the invoice date”.
What happens when payment is late?
- If an invoice is not paid within the agreed payment terms it becomes a late payment.
- This means: We have a legal right to claim interest.
- The interest that we charge is called ‘statutory interest’. The amount of statutory interest that we can charge is 8% of the invoice total, plus the Bank of England’s base rate for business to business transactions.
- The base rate is currently 0.5%. So we are able to charge 8.5% interest on late payments.
How do we calculate interest?
- This interest is simple interest, not compound. So to work out how much we can charge we need to calculate what the amount of interest would be for a whole year, then work out the daily rate from that.
- As an example, if you have a late payment worth £10,000: The annual amount of interest would be £850 (8.5% of £10,000).
- The daily amount of interest would be £2.33 (£850 divided by the 365 days in a year).
- After 10 days the amount of interest would be £23.30 (£2.33 x 10), after 30 days it would be £69.90 (£2.33 x 30), and so on.
- If numbers are not your thing you might want to use a tool to work this out for you. A quick Google will give you plenty of options. We quite like this calculator by Don’t Pay Late.