Contractors handed tougher 'late payment' templates

More formal and precise letters that ContractorUK’s readers and other IT contractors can use free of charge to demand payment from late-paying clients or agents have been published.

Released by Safe Collections, the ‘late payment letter’ templates  are designed to give recipients less wiggle room by making a number of points in the letter clearer, more relevant and stark.

Firstly, each payment reminder letter now says that interest will be potentially levied under the late payment regulations of 2013, not their predecessors -- the 2002/1998 regulations.

Secondly, the wording in payment letters B and C has been honed to “reflect the fact that most contractors will have a formal contract” in place, says Safe Collections’ manager Adam Home.

And thirdly, and crucially because as Mr Home says “every trick in the book is still being used to dodge payment,” the ‘Final Demand’ letter now includes a warning of extra cost where a collection agency has to be brought in.

“If debt collection agency ‘[insert name]’ is instructed to collect this overdue amount, your company will be liable for any additional debt collection costs incurred by us in their engagement,” the recipient is told.

The Final Demand letter, which is Letter C in the downloadable series, concludes: “We would therefore respectfully suggest that you treat this matter with the urgency it deserves and remit the full balance due plus associated late payment penalties immediately.”

ContractorUK has today published the new and improved series of late payment templates -- the contents of which contractors are free to cut and paste onto email, if preferred to a letter.  

Mr Home reminded: “The late payment charges outlined in these templates can only be charged on commercial business-to-business transactions, and not on business-to-consumer debts.”

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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