Contractor late payment letter template - updated
A debt collection agency regularly enlisted by out-of-pocket IT contractors has updated its ‘final demand for payment’ letter template that such workers can use for continually outstanding invoices.
Safe Collections says its exclusive article for ContractorUK, ‘Contractor late payment letters – free templates,’ now reflects the March commencement of The Late Payments of Commercial Debts Regulations 2013.
The regulations, which cover any business-to-business invoice raised after 16.03.13, permit contractors to add ‘reasonable’ recovery costs (where incurred) to their invoice when a commercial client does not pay on time.
As a result, a new downloadable template for the ‘Final Demand’ letter now states: “Please note – if an agency is instructed to collect, your company will be liable for any additional collection costs incurred,” in line with the 2013 rules.
Safe Collections’ Adam Home reflected: “For invoices raised prior to March 16th 2013, the previous [late payment] legislation still applies.
“And while the new charges cannot be levied on B2C debts, commercial contractors may find that they can now claim significantly more money back when they are forced to chase a business for payment.”