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BPPG
announces new late payment interest rate
The Better Payment Practice Group (BPPG) advises businesses that the
full interest rate for companies wishing to apply the late payment
legislation will be 12.5% for the period 1 January to 30 June 2006.
For the previous period (1 July to 31 December 2005) the rate was 12.75%.
The late payment legislation provides businesses with a statutory right
to claim interest and compensation on overdue commercial debts.
The late payment interest rate is set twice a year and is calculated
by adding 8% to the reference rate, which is the Bank of England base
rate on 30 June and 31 December. This interest rate is applicable for
the ensuing six-month periods, i.e. 1 July to 31 December and 1 January
to 30 June respectively.
December 13 2005
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