How does the Bank of England interest rates effect you?

The Bank of England raised interest rates on 2nd November 2017 from 0.25% to 0.5%.

This will effect you in 2 ways:-

  1. On business loans you may be paying a slightly higher rate of interest

However……. The Good News Is-

  1. When seeking to recover your debts for you we can charge your client’s a higher interest rate on unpaid invoices

In 2002 – Legislation provided all businesses the entitlement to:-

  • Claim interest for Late Payment
  • Claim reasonable Debt recovery costs (unless the supplier has acted unreasonably)

Businesses are entitled to Claim interest and debt recovery costs (unless you are claiming contractual interest rates).

The debt recovery costs you are entitled to claim relate to the size of the debt:-

The interest you can claim on Late Payments is 8% above the Bank of England base rate (i.e it will increase from 8.25% to 8.5%).

The relevant dates for interest rates under the rules for interest is the “reference rate”.

As such the Bank of England base rate on 31st December is the “reference rate” for debts overdue between 1st January and 30th June each year.

The Bank of England base rate on 30th June is the “reference rate” for debts becoming overdue between 1st July and 31st December each year.

On 31st December 2017 we will be updating the Late Payment interest charging rates to 8.5%.

However – you should be asking yourselves…..

“Does my contract make provision for late payment interest and debt recovery costs?”

Often businesses  charge a contractual rate of interest, (this must be identified in the Terms of Business) which tends to be a percentage above base rate, this should have been applied for any invoice due after 2nd November 2017.

If you have stipulated a contractual interest rate it is imperative that you also identify you will be charging debt recovery costs or this option will not be available to you.

If you do not have provisions in your contract for these perhaps 2018 is the time to update your Terms and Conditions – (Click on the link to find out how we can help you with this).

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Residential Landlords – What the 2017 Budget means for you

If you are a residential landlord then here are some key facts about how the 2017 Budget may impact you.

Finance and Tax

Stamp Duty Land Tax – the Government has raised the price at which a property becomes liable for SDLT to £300,000 for first time buyers.

Raising the Income Tax bracket – The personal allowance for income tax has been increased from £11,500 to £11,850 (effective from April 2018). The threshold at which you pay a higher rate of income tax will rise from £45,000 to £46,350.

Mileage Rates for Landlords – The Government will continue to allow unincorporated landlords the choice to use either the Government’s fixed mileage rates or actual vehicle running costs and capital allowances when it comes to calculating deductible motoring expenses fro when you prepare your tax returns.

Supply and Rents

Empty Homes Premium – Local authorities will now be able to increase the Council Tax premium on empty properties from 50% to 100%.

Longer Tenancies – The Government is to consult on barriers to landlords offering longer, more secure tenancies to those tenants who want them.

Register of Planning Permissions – The government will develop a central register of residential planning permissions from local authorities to improve information on where permissions are held and progress towards them being built.

Please contact a member of our Litigation team if you have any queries on 01922 700 730 or email enquiries@laneandcosolicitors.com

Yes – she has done it again !

 The Chasewater Christmas Pudding Dash – 10K

Well done Helen – Running time 00.58.07

Helen continues to run at her best come rain sun or shine, in this case snow!

Helen, along with 321 others, took part in a 10K charity run on Saturday 25th November 2017

at Chasewater County Park in Burntwood.

Keep up the good work Helen !!

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Lane & Co. are the UKs longest established specialist Commercial Debt Recovery firm, formed in 1978. Let us demonstrate to you how effective we can be.
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Latest News

504, 2019

SME’s Owed £14.9 Billion in Late Payments

Research by Liberis in March 2018 showed that £14.9 billion was owed to businesses as a result of late payment of invoices, and it’s getting worse. In the six months prior, the figure was £1 billion lower. Our Commercial Debt Recovery Solicitors can help recover your late payments.

504, 2019

What is the Government Doing About Late Payments to Businesses?

In his Spring statement, the Chancellor Philip Hammond said that “We need to tackle the scourge of late payments.” His comments are welcome, but how quickly will legislation come in. We continue to collect £10s of millions in late payments every year for our clients.