Firms owed money under goods and services contracts signed since August 7 will be able to charge a new statutory interest rate on any late payments following revisions to the law in this area. This rate will be set by government and presently stands at 12%. <p></p><p>The revised Act also entitles creditors to additional compensation for chasing late payment, depending on the size of the debt. For less than &amp;£1000 debt the sum is &amp;£40, for a debt of &amp;£1000 or more but less than &amp;£10,000 the sum is &amp;£70 and for a debt of more than &amp;£10000 the sum is &amp;£100. </p><p>The DTI has published a guide which is available by telephoning 0870 150 2500 or downloading from the Better Payment Practice Group website at www.payontime.co.uk</p><p></p>