New tool lets the unpaid tot up what they'll recover
A new online tool is promising freelancers an immediate indication of whether exercising their legal rights when paid late by a client is likely to be worth it.
The tool, which is free to use, takes into account the updated late payment regulations from 2013, which let businesses potentially pursue all “reasonable costs” of recovering a debt.
This means that administration or legal fees can be recovered by a B2B trader, assuming the fixed amount of compensation due to them does not cover such costs.
But the rules which the tool is programmed to reflect are not retroactive, so traders can only recover “reasonable costs” on commercial contracts completed after they took effect (March 16th 2013).
The calculator has gone live in the same week that Sage UK reportedly found that nearly two-thirds of businesses have suffered late payments of 90 days or more in the past six months.
Editor’s Note: Further Reading -
15th January 2014