Will
I Receive Payment on Time?
Government departments are required to pay promptly in accordance
with agreed contract terms. Normally within 30 days, or other agreed
credit period, of the department receiving a valid invoice. Any
changes made during the period of the contract should be agreed
in writing.
Make sure that the department is informed of any changes to details
such as your business name or address.
Also check information required on invoices as well as to which
payment office to use and the name of the person who deals with
enquiries. Some departments produce guidance literature which includes
this information. The Government introduced legislation on 1 November
1998 to give businesses a statutory right to claim interest if another
business pays its bills late. Previously, businesses have only been
able to claim interest on late paid debts if it is included in the
contract or if they pursue the debt through the courts and the courts
decide to award interest. The legislation is called the Late Payment
of Commercial Debts (Interest) Act 1998. Further information about
the Act may be obtained from the following web site: www.dti.gov.uk/about/suppliers/payment.htm