Regulatory Terms of Engagement

Late payment in commercial transactions / regulations

The Institute’s standard terms and conditions of purchase stipulate that payment should not normally be made prior to the receipt of services or supplies.

Under the Late Payments in Commercial Transactions Regulations 2002, payment will be made within 45 days of receipt of invoice or delivery of the goods and services, whichever is the later. The act does not require that payment be made to a supplier who has failed or refused to comply with a request for a tax clearance certificate. Furthermore it extends the time limit for payment where there are delays in furnishing the tax clearance certificate.