Businesses cheer tighter late payment rules

An update on our previous article: "Legal Basis for Prompt Payments"

Further tinkering by the BIS has addressed a technical problem with the Late Payment of Commercial Debts Regulations 2013.

With the catchy name of the “Late Payment of Commercial Debts (No. 2) Regulations 2013”, the amendment slashes the maximum period before statutory interest starts to run by 30 days, to 60 days or 90 days after contractual performance.

Throughout the recession late invoice payment has strained the cashflow for many businesses, and although awareness of the rules remains low, they have provided a legislative basis for speeding up debt collection.

This further clarification has helped, although since the changes do not have retrospective effect, ambiguity about the position with contracts formed before May 2013 is inevitable.

If you are struggling to collect payments, or would like advice on your payment terms, contact Tolhurst Fisher’s commercial department on 01245 216100.

Christchurch Preschool Sponsorship

Tolhurst Fisher recently agreed to sponsor a bouncy castle for the Christchurch Preschool. Michelle Waterman tells us more:

"Tolhurst Fisher very kindly agreed to sponsor the bouncy castle at my daughter’s preschool welcome BBQ on Sunday.

I am on the committee for the preschool and this was our first ever Welcome to New Parents BBQ for Christchurch Preschool (a non-profit making organisation that is managed by the staff and a committee of parents) in Colchester, and it was a great success. 

The weather was kind and we even managed to raise funds, thanks to all the parents who purchased our hotdogs and homemade cakes and to the kind sponsorship of Tolhurst Fisher towards the hire of the bouncy castle."

Employee Shareholder Scheme

September has seen the introduction of the controversial Employee Shareholder Scheme, whereby employers can offer no less than £2,000 in shares to employees in return for them giving up certain employment rights.  It is intended to be a separate form of employment status. 

The Employee Shareholder will waive the right to claim unfair dismissal (apart from automatically unfair dismissal or where it is based on discriminatory grounds or in relation to health and safety), a statutory redundancy payment and certain other statutory rights.

It is of course a little more complicated than this so if you would like more information please contact Marsha Robinson on 01245 216114.