Early Payment Invoice Discount Scheme for LCC Transport Contractors
The County Council’s Sustainable Travel Group (STG) is considering the introduction of a scheme whereby, in exchange for a deduction of 1% (before VAT if charged) from the invoice total, an invoice will be paid within 14 calendar days of its receipt at the STG.
The proposal has received some support at recent bus and taxi operator forums, so the STG is now formally inviting expressions of interest from operators in a scheme for invoices received on or after 1 June 2012, on the following terms:
- The STG reserves the right not to proceed with the discount scheme after considering the responses to this invitation which are in favour of joining the scheme. STG has finite resources for invoice processing, with no prospect of increased resources, and would not be able to process all (or a very large portion of) invoices it receives each month within 14 days. Equally, if there is very little interest, STG would not set up a separate system especially for very few invoices each month.
- The scheme is only open to those operators who are set up to be paid by BACS and is only for payments relating to STG services for mainstream and special schools and social care establishments. It will NOT apply to invoices for local bus services, community transport, voluntary transport, demand responsive transport or other miscellaneous invoices for services procured by the STG.
- If an operator joins the scheme, the 1% deduction and 14-day payment terms must be applied to all invoices submitted. Operators will not be able to pick and choose whether or not to apply the discount to a particular invoice.
- The 14-day period cannot begin until the invoice is accepted as correct. If price or journey details do not correspond with the STG’s record, STG staff will have to investigate. If a disputed invoice is found to be correct, or is corrected with the operator’s agreement, standard practice will either be to begin the 14 day count from the original date of receipt, or if after investigation there is insufficient time remaining to arrange payment within 14 days of the original date of receipt, to pay at the next available routine BACS run.
- Invoices from operators who have opted in to the scheme but which omit to show the 1% deduction on the invoice will be treated as disputed.
- “Pay” and “payment” refer to the initiation of a BACS electronic transfer in sufficient time in the normal course of events to reach the supplier by the 14th day after the date of receipt of the invoice.
- Invoices should not be submitted before the work to which they refer has been completed, in order to bring forward the payment date. For the purposes of the discount scheme, the date of receipt of such invoices will be taken as the final day of operation as shown on the invoice.
- Invoices outside the discount scheme will continue to be paid within 30 days of the date of receipt or the last day of operation to which they refer, whichever is the later.
- Contractors wishing to leave the scheme must provide 1 calendar month’s notice.
- The Authority reserves the right to review the scheme at any time and to cease the scheme at any point with 2 calendar month’s notice.
In order to formally request that your company participates in the discount scheme please send an email to STG@leics.gov.uk by Friday 27th April 2012 at the latest and include your name, company name, your position in the company and the date of your request.
The Authority will confirm the commencement of the scheme or otherwise by Monday 30th April 2012.
To discuss this scheme further, please contact Phil Brecknell on 0116 305 7249, from Tuesday 10th April onwards
Page Last Updated: 3 April 2012