The Better Payment Practice Group (BPPG) has advised businesses that the interest rate for companies wishing to apply the late payment legislation will remain at 11.75% for the period 1st January to 30th June 2004.
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 30th June and 31st December. This interest rate is applicable for the ensuing six-month periods, i.e. 1st July to 31st December and 1st January to 30th June respectively.
