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