5 ms·
> - Late payment shall incur interest at 8% above the BoE base rate and a late fee of 100 GBP as per the UK Late Payment Legislation. Partial payments on invoic
by k2enemy 5mo ago
> - Late payment shall incur interest at 8% above the BoE base rate and a late fee of 100 GBP as per the UK Late Payment Legislation. Partial payments on invoices shall apply to late fees, interest, and then principal, in that order.
Do you mean 8 percent, or 8 percentage points?
- eckesicle 5mo agoThe exact wording in our contracts and the government guidance is “8% plus the Bank of England base rate”. They mean “percentage points”. https://www.gov.uk/late-commercial-payments-interest-debt-recovery/charging-interest-commercial-debt https://www.gov.uk/late-commercial-payments-interest-debt-re... As I understand it, from our lawyer, is that this exact wording is automatically enforceable in UK courts and easiest in the event of a dispute. It’s also generally internationally accepted.
- hananova 5mo agoI've always wondered, in cases like this where 8%+2% (for example) can either mean 10% or 8.16%, why doesn't the contract just give a fictional example of how the maths would work out?