Late Payment of Commercial Debts (Amendment) Regulations 2015
On 29 May 2015, the Department for Business, Innovation and Skills published the Late Payment of Commercial Debts (Amendment) Regulations 2015 to clarify Section 4 of the Late Payment of Commercial Debts (Interest) Act 1998; the legislation which created a statutory right to interest on debts owed to a supplier under a contract where payment was made late.
Section 4 of the Act prescribes the start date of statutory interest.
The purpose and effect of Section 4 remains the same, however, a supposedly "simpler" set of subsections has now been included in order to make calculating the start date for statutory interest easier. The Regulations only affect the start date for statutory interest, and not the start date of contractual interest, or the date for payment of the principal debt. The changes therefore, in practice, will not affect the majority who use the Act but still need to be noted all the same.
This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.