Contact Us

The percentage of SMEs claiming for late payment that include compensation, has risen over the last two years, according to new research by debt recovery law firm, Lovetts.
 
In 2010, just a quarter of claims handled by Lovetts included compensation, rising to 31 per cent in 2012 and 33 per cent since the turn of 2013.
 
The firm believes that many small businesses are missing a trick in claiming compensation because they failed to lay down any firm ground rules at the outset of new business relationships.
 
Subsequently, Lovetts urges businesses to take a tougher line on late payments and, if necessary, use the legislation that’s already available to them.
 
The onus is on small firms to ensure the customer is aware of the legitimate costs, compensation and interest that will be incurred in the event of late payment.
 
Charles Wilson, CEO of Lovetts, said: "New late payment regulation was introduced in March but based on the poor use of existing legislation; I have very little faith in the EU directive making any impact on late payment practices.
 
"It comes down to business relationships and ensuring that in the early stages SMEs make clear that they won’t stand for any delays and will claim costs if necessary.
 
"With suggestions that the economy is starting to pick up, we would urge the small and medium-sized firms to tackle the issue of payment upfront as new customers come on board. Don’t let it become the elephant in the room."
 
Greater London firms suffer most out of all UK regions from late or failed payments from customers (41 per cent), significantly higher than the national average of 24 per cent as published in a study by Santander Corporate & Commercial.

Date published 26 Jun 2013 | Last updated 26 Jun 2013

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free consultation

020 3941 2011

Or contact us