Late payment interest rate now 12.5%

The Better Payment Practice Group (BPPG) has announced a rise in the interest rate for companies applying UK late payments legislation. The new rate, which applies from 1 July 2004 to 31 December 2004, will be 12.5%.

Late payment legislation gives businesses a right to claim interest on overdue commercial debts. The interest rate is set twice a year and is the Bank of England rate on either 30 june or 31 December plus 8%.

The BPPG is a co-operative of representatives of business and government that aims to improve the payment culture in the UK and includes CIMA, ACCA, the...

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