Whatever interest rate on late payments you might think you have agreed in a contract, if it was signed after 16 March this year, contractors can claim interest at 8% above base rate if you pay late due to a new EU law.

What has changed for contracts entered into on or after 16 March 2013 is that contractors can now claim interest on unpaid debts at 8% above base rate from public authorities, no matter what interest rate has been agreed in the contract.