The Late Payment in Commercial Transactions Regulations 2002 came into effect on 7th August 2002. The above Regulations set time limits for payment of accounts by local authorities to suppliers and contractors etc., and make the local authority liable to pay interest on late payments (over 30 days).
Penalty Interest Where payment is late, the supplier is entitled to be paid interest, at a rate set by the Minister, from the date the payment was due to the date the account is paid. In the case of an incorrect invoice, interest becomes due ten days after receipt of correct invoice, if later than the prescribed date. (as at 1st July 2007 daily interest rate is 0.0301%)