If you are a freelancer and spend your life getting stiffed by clients, then check this out.
The Freelancers Union is a running a campaign Support the Freelancer Payment Protection Act. Add your name to the growing list of people who believe freelancers should be able to collect the money they’ve rightfully earned.
We have had this kind of legislation to help protect the “little guy” in the UK for over 10 years now and it should be very similar in all EU countries as well by now as well.
It is called the “Late Payment of Commercial Debts (Interest) Act 1998”. It entitles you to charge interest on the debt from the day the invoice becomes overdue (usually 30 days after the invoice date). You can charge interest at 7% over bank base rate plus you can charge compenstaion as well. £40 for debts up to £1000, £70 for debts from £1000 to £10,000 and £100 for debts over £10,000.
It also protects you from a customer imposong unfair credit terms on you.
You should put the fllowing phrase on all your invoices…
We understand and will exercise our statutory right to claim interest and compensation for debt recovery costs under the late payment legislation if we are not paid according to agreed credit terms.
You can get much more information from the Payment On Time web site