LATE PAYMENT CHARGE POLICY

 

This policy sets out the formal structure for late payment charges applied in accordance with UK Government guidance for business-to-business transactions.

 

Legal Basis

 

Under the Late Payment of Commercial Debts (Interest) Act 1998, a supplier is legally entitled to charge statutory interest and fixed compensation where agreed payment terms have not been met.

 

Statutory Interest Rate

 

The statutory interest rate for late B2B payments is calculated as follows:

• 8% above the Bank of England base rate

• Bank of England base rate: 3.75%

• Statutory interest rate: 11.75% per annum

 

Interest Calculation

 

Interest is calculated as simple interest and accrues on a daily basis from the day immediately following the invoice due date until full payment is received. The interest accrued is calculated by reference to the outstanding invoice amount, which reflects the agreed license fee for the authorised use of the photographic work. Any late payment interest therefore corresponds directly to the value of the license fee that remains unpaid. Such interest will continue to accrue daily and will be calculated and charged on a monthly basis until all outstanding sums relating to the license fee are settled in full.

 

Late Payment Compensation

 

In addition to statutory interest, UK Government guidance permits the application of a fixed late-payment compensation charge.

 

For debts between £1,000 and £10,000:

• Fixed compensation charge: £70.00

 

This compensation is intended to cover administrative and recovery costs associated with late payment and is applied in addition to statutory interest.