IPSE’s economics expert Ryan Barnett explains the importance of knowing your rights when it comes to late payment as a freelancer.
Ryan says that late payments cause huge issues for freelancers across every sector. In fact, on average, freelancers lose about 20 days per year just chasing late payments. So, do freelancers have rights when it comes to this? You’ll be pleased to know the answer is yes.
Following the Late Payment of Commercial Debts (Interest) Act 1998, you are legally allowed to reclaim the costs outlined in the invoice plus compensation. Even if not stated in your payment conditions, you could get compensation against public sector organisations and businesses with more than 50 employees. You can now also claim up to eight per cent interest on payments from other small business, starting from the day after the invoice deadline.
Find out more about dealing with late payments on the Freelance Corner website here.