interest on late payment

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • interest on late payment

    I am sure I saw it on here but the search facility does not find it, for late payment I can charge 8% interest.

    If correct, is that what the Inland rev charge for late tax payment? or did it come from somewhere else.

    Thanks in advance, if I have completely got it wrong apologies.

  • #2
    Originally posted by Poolboy View Post
    I am sure I saw it on here but the search facility does not find it, for late payment I can charge 8% interest.

    If correct, is that what the Inland rev charge for late tax payment? or did it come from somewhere else.

    Thanks in advance, if I have completely got it wrong apologies.
    The 8% is probably from the interest chargeable (if claimed) on court cases. Normally, for rent, a 2 or 3 percentage points above BoE base rate is normal - if specified in he AST. To be honest, it amounts to pennies a day at current interest dates so the 'ill-will' is not worth it except in exceptional circumstances.

    I feel 8%, even if in the AST, would be considered 'unfair' under UTCCR and likely to be unenforceable.

    Comment


    • #3
      thanks Snorkerz, you are right. With interest rates so low its 3 GBP interest at base +3. Just about enough for a coffee.

      Comment


      • #4
        depends on how many days they are late! our old letting agency charged £30 for late payment and 7% interest for every £100 late. We are having the same problem with tenants not paying. Any suggestion on how to get them to pay???

        Comment


        • #5
          Originally posted by Frustration View Post
          depends on how many days they are late! our old letting agency charged £30 for late payment and 7% interest for every £100 late. We are having the same problem with tenants not paying. Any suggestion on how to get them to pay???
          That was penal and would not have been upheld by the court.

          Comment


          • #6
            You really need to have stated what the interest rates will be in the contract, you can't just make it up as you please.

            A typical contract would say as suggested bank base rate + x%, personally I would argue 8% is fine given the standard consumer bank overdraft rate ranges 10-12% however you need to have made a statement to that effect from day one. No clause, no immediate comeback until/if it goes to court at which point interest will be applied to the debt by the judge.

            As lawcruncher rightly says, you can not charge a penalty fee for arrears, it is consider unfair under the UTCCR 1999 regulations and is unenforceable.

            Comment


            • #7
              Originally posted by matthew_henson View Post
              You really need to have stated what the interest rates will be in the contract, you can't just make it up as you please.

              A typical contract would say as suggested bank base rate + x%, personally I would argue 8% is fine given the standard consumer bank overdraft rate ranges 10-12% however you need to have made a statement to that effect from day one. No clause, no immediate comeback until/if it goes to court at which point interest will be applied to the debt by the judge.

              As lawcruncher rightly says, you can not charge a penalty fee for arrears, it is consider unfair under the UTCCR 1999 regulations and is unenforceable.
              Indeed, it should be in the formal original AST - what happends for late payments etc.
              C

              Comment


              • #8
                Originally posted by matthew_henson View Post
                As lawcruncher rightly says, you can not charge a penalty fee for arrears, it is consider unfair under the UTCCR 1999 regulations and is unenforceable.
                It is in fact anyway a penalty under the common law.

                Comment

                Latest Activity

                Collapse

                Working...
                X