Finance directors are set to ignore the right to charge custo-mers interest under the govern-ment?s new late payment Act.
The Late Payment of Com-mercial Debts Act will come into force on 1 November. It allows businesses to charge interest of 8% above the base rate on late bills. For the first two years, these powers can only be used by small businesses against large companies.
But the Big Question survey, carried out by Accountancy Age and Reed Accountancy Personnel, found 51% of FDs said they would not charge late-paying customers interest.
Paul Suter, FD of motor dealer Harwoods, said: ?Charging interest will only damage relationships with customers.?
Michael Woodisse, FD of laboratory equipment manufacturer Grant Instruments, said: ?The act is too inflexible.?
Among the 30% of FDs who said they would make use of the act was Graham Mill, of industrial water treatment service Ecolochem. ?We welcome any initiative that helps us recover money in a timely fashion.?
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.
Kevin Reed discusses whether new accountancy group Cogital can rival the Big Four...and its likely direction of travel