Comment by k2enemy
4 hours 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?
The 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-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.