Late Payment Compensation
Published 16 October 2019. By Ruairi Maguire
In Northern Ireland, the recovery of unpaid business-to-business debts may be subject to the Late Payment of Commercial Debts (Interest) Act 1998 and 2002 Regulations. The purpose of this legislation is to safeguard creditors who have not been paid, and permits them to charge statutory interest and late payment compensation from debtors.
The value of compensation varies depending on the level of the debt and the number of invoices against the debtor. The levels of compensation that can be applied per invoice are as follows:
|Outstanding Debt||Late Payment Compensation|
|£0.01 – £999.99||£40.00|
|£1000.00 – £9999.99||£70.00|
|£10,000.00 and above||£100.00|
Interest can also be applied to unpaid debts which are based upon the Bank of England base rate plus 8% which is a total of 8.5%.
In a recent case for one of our clients, MKB Law successfully recovered the total debt owed of £3497.82 as well as £400.00 in late payment compensation and £829.59 in statutory interest. Our debt recovery and insolvency department received positive feedback from the client who stated: ‘Excellent prompt result. Well done team!’
MKB Law are regarded as one of the principal debt recovery and litigation solicitors in Northern Ireland. If your business has any unpaid debts and you require our assistance, then please complete our online enquiry form and a member from the debt recovery and insolvency team will respond to you as soon as possible.
Debt Recovery & Insolvency Team