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  • FIRST POST
    • MSE Martin
    • By MSE Martin 14th Aug 06, 12:02 PM
    • 8,111Posts
    • 42,248Thanks
    MSE Martin
    Late Payment Calculator - Great to get payments
    • #1
    • 14th Aug 06, 12:02 PM
    Late Payment Calculator - Great to get payments 14th Aug 06 at 12:02 PM
    Many self-employed/freelancers/small businesses face the same problem. You've done the work - yet your corporate clients haven't paid on time.

    Yet you have a legal right to charge interest if companies don't pay you...

    Use this for your gain

    Go to the 'campaign for better payments' late payment calculator

    www.payontime.co.uk/calculator/statutory.html

    Enter the details and it calculates how much interest you are owed on a statutory basis. This is normally rather a lot as the rate you're entitiled to charge is the base rate plus 8%. Then print out the result and send it to the company who hasn't paid as part of a reminder invoice - this time including the interest.

    It's amazing how quickly companies will pay when they realise each days delay is costing them!

    Martin


    Last edited by Former MSE Natasha; 15-08-2006 at 12:07 PM.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

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Page 1
    • tru
    • By tru 14th Aug 06, 12:07 PM
    • 8,720 Posts
    • 45,920 Thanks
    tru
    • #2
    • 14th Aug 06, 12:07 PM
    • #2
    • 14th Aug 06, 12:07 PM
    Excellent

    My boss is always complaining when people pay late, but he does nothing about it except moan to me

    Thing is, the late payments make the bank account overdrawn, then he gets charged, then he moans some more :rolleyes:

    I wish he'd let me get my hands on the finances.
    Bulletproof
  • Kilty
    • #3
    • 14th Aug 06, 4:01 PM
    • #3
    • 14th Aug 06, 4:01 PM
    Nice one Martin, that might come in handy some day
    • adr0ck
    • By adr0ck 14th Aug 06, 11:16 PM
    • 2,305 Posts
    • 1,456 Thanks
    adr0ck
    • #4
    • 14th Aug 06, 11:16 PM
    • #4
    • 14th Aug 06, 11:16 PM
    hmmmmmm

    sounds good until you lose business because of it....and believe me you will unless you offer something they cant get elsewhere

    you may find that you suddenly are not competitive anymore as companies add 8-10 % onto your prices to cover possible late payment charges
    Last edited by adr0ck; 14-08-2006 at 11:22 PM.
  • Lawbag
    • #5
    • 15th Aug 06, 9:57 AM
    • #5
    • 15th Aug 06, 9:57 AM
    thats always the way, you charge interest, you will lose the client.

    in my case its preparing statutory accounts, but I wont release them until they have paid. threat of costs from the Inland Revenue are sufficient incentives to pay my accounting bills.
    "See you on the Other Side"
    • ukmonkey
    • By ukmonkey 16th Aug 06, 5:58 PM
    • 3,004 Posts
    • 2,347 Thanks
    ukmonkey
    • #6
    • 16th Aug 06, 5:58 PM
    • #6
    • 16th Aug 06, 5:58 PM
    Thing is, the late payments make the bank account overdrawn, then he gets charged, then he moans some more :rolleyes: .
    by troo
    Tell him to claim back the charges!

    Take a look at the threads on these forums, or the Consumer Action Group (www.consumeractiongroup.co.uk) website that is sponsored and supported by Martin himself!
    • tru
    • By tru 16th Aug 06, 6:29 PM
    • 8,720 Posts
    • 45,920 Thanks
    tru
    • #7
    • 16th Aug 06, 6:29 PM
    • #7
    • 16th Aug 06, 6:29 PM
    Tell him to claim back the charges!

    Take a look at the threads on these forums, or the Consumer Action Group (www.consumeractiongroup.co.uk) website that is sponsored and supported by Martin himself!
    by ukmonkey
    I'm working on it
    Bulletproof
    • keith234
    • By keith234 16th Aug 06, 11:46 PM
    • 164 Posts
    • 139 Thanks
    keith234
    • #8
    • 16th Aug 06, 11:46 PM
    • #8
    • 16th Aug 06, 11:46 PM
    excellent post ta
    It's nice to be important but it's important to be nice!

    If u think my post has been helpful, push my 'thanks' button cheers
  • markmc999
    • #9
    • 17th Aug 06, 12:27 AM
    • #9
    • 17th Aug 06, 12:27 AM
    Something to note however is that you do not have to have listed on your origional invoices that you will claim interest if they do not pay on time. This i find really handy as I can send out invoices to people with no "late payment blurb" on it yet whack it on if I need to.

    Have a look at the site Martin listed for all the info.
  • STATMAN
    Late Payment Admin Fee
    In addition to charging interest on late paying customers small companies can also charge an admin fee against other businesses (I don't believe this applies to the general public). I run a small business and as far as I am aware this legislation is best used to try to get customers to pay on time rather than as a punishment for paying late. This is certainly the way we have used the legislation and have found it very effective. On those few occasions where we have actually added the admin fee and interest we have already reached the point of issuing a summons to retrieve our money and so have already decided that continuing to supply was not economically sound for our company.
  • McAzrael
    Remember you can do it the other way round, by offering a prompt payment discount. As long as the offer is genuine, there is no VAT liability on the difference between the prompt and tardy payment prices. See www.hmrc.gov.uk for details.
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