58. Late payment rules

58.1. The Late Payment of Debts (Interest) Act 1998 was introduced to give small businesses the right to charge interest on late payments from large organisations and public authorities. Key points are:

• Small businesses can charge interest on overdue invoices;
• Interest is chargeable on sales made after 1 November 1998;
• The rate of interest is currently 8% per annum above the official daily rate of the Bank of England;
• The Act also applies to overseas organisations;
• The institution can be sued for non-payment.

58.2. In view of the penalties in this Act, Council requires that invoices must be passed for payment as soon as they are received.