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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