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Eilef


Senior Member

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Posts: 214
Date:
Late payment fee
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OK, 

So I have a friend who has been let down by her customer for payment of her childminding bill.

she is on a monthly contract and has always paid monthly on time as a rule, however as of late the payments are getting late and she is always asking for days and times that she is billed for.

My friend is having new contracts written up with a late payment fee clause and wants to charge £20 a day, I told her this was a little excessive and I didn't think it would be legal, and I told her I would check.

 

So my question is how much can she charge as a late payment fee?

 

many thanks

 



__________________

Kind Regards

 

Eilef Loken MIAB

 
bro0010


Senior Member

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Posts: 115
Date:
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Hi Eilef,

These might be of interest

www.gov.uk/invoicing-and-taking-payment-from-customers

and

www.gov.uk/late-commercial-payments-interest-debt-recovery

I'm not sure how relevant the commercial debt guidance is to your friend's circumstances but it is interesting to note at

www.gov.uk/late-commercial-payments-interest-debt-recovery/claim-debt-recovery-costs

that at least £40 seems to be OK for a commercial debt.

Base rate plus 8% per annum interest on overdue amounts is certainly allowed.

I have seen this guidance used for a commercial debt but not for consumer debt.

I hope this is of some interest and may be of some help.

Regards,




__________________

Ian

Ian Brown FCA
Onion Reporting Software Ltd

www.onionrs.co.uk

Sage accounts in Excel to go. No set-up necessary.
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
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Whilst not answering your question specifically, I would be suggesting that she looks to charging weekly. I've never had a childminder charging monthly and I've had a lot over 14years. All the after school clubs locally charge weekly too.

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
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