LPCDIA 1998
Late Payment of Commercial Debts (Interest) Act 1998
What this means for your business
- Applies to
- United Kingdom
- On this page
- 1 compliance obligation, 2 practical guides across 2 topics
What you must do
1 compliance obligation under this legislation.
Payments and fees 1
Pay fixed compensation for late commercial payments
If you owe a commercial debt and you pay late (i.e., after statutory interest starts to run), you must also pay a fixed compensation sum to the supplier – £40 for debts under £1,000, £70 for debts between £1,000 and £9,999, and £100 for debts £10,000 or more. If the supplier’s actual recovery costs are higher than that fixed amount, you must also cover the shortfall.
Practical guidance
Our guides explain how to comply with the requirements above.
Late payment: your rights as a business
Claim statutory interest and debt recovery costs when business customers pay invoices late. Covers the Late Payment of Commercial Debts …
Get paid for your exports
Payment methods, export finance, and how to reduce the risk of non-payment when selling overseas.
Sections and provisions
19 classified provisions from this legislation.
Definitions 10
- s.1 Statutory interest.
- s.2 Contracts to which Act applies. contract for the supply of goods or services property in goods
- s.3 Qualifying debts.
- s.4 Period for which statutory interest runs. public authority
- s.7 Purpose of Part II.
- s.9 Meaning of “substantial remedy”.
- s.10 Interpretation of Part II. contract term contractual remedy
- s.11 Treatment of advance payments of the contract price. advance payment
- s.13 Assignments, etc.
- s.16 Interpretation. contract price purchaser qualifying debt