Ask the Collective

What late payment terms and fees should we include in invoices?

Late payment clauses are common practice but enforcement can be tricky. Members suggest: - **Bank of England base rate + 5%** — cited as a standard approach in T&Cs, though members note enforcement can be difficult in practice. - Legal precedent around 'penalty fees' vs 'reasonable costs' — the distinction matters, so some members recommend getting specific advice before setting terms. Members flagged that late payment clauses "can be quite delicate" and suggested seeking tailored guidance rather than applying a blanket approach. If you want specific tips on structuring terms, reach out to members who've dealt with enforcement.