1. Purpose
This document sets out Luma Education Recruitment's standard terms for paying its suppliers, and the interest and compensation suppliers are entitled to claim if a payment is made late. It applies to all invoices issued to Luma Education Recruitment by third-party suppliers, contractors and vendors, and forms part of Luma Education Recruitment's commitment to fair payment practice, including its application to the Fair Payment Code.
2. Standard payment terms
Payment within 30 days of receipt of a valid invoice.
A valid invoice must clearly state: the supplier's name and remittance details, an invoice number and date, a description of the goods or services provided, any applicable purchase order or job reference, and the amount due including VAT (where applicable).
Where an invoice is incomplete, incorrect, or disputed in good faith, Luma Education Recruitment will notify the supplier within five working days of receipt, explaining the reason, and will pay any undisputed part of the invoice within the normal 30-day term. Disputes are handled by a director, who will aim to resolve them within ten working days. The 30-day period for any disputed amount will run from receipt of a corrected, valid invoice or the date the dispute is resolved.
Payment will normally be made by bank transfer (BACS) to the supplier's nominated account, unless another method is agreed.
These terms will not be varied unilaterally by Luma Education Recruitment to the detriment of a supplier without prior agreement.
Where Luma Education Recruitment sub-contracts any part of a public sector contract, it will pay its sub-contractors within 30 days of receiving a valid invoice, in line with the Procurement Act 2023, and will require those sub-contractors to apply equivalent terms to their own supply chain.
3. Interest on late payment
If Luma Education Recruitment fails to pay a valid, undisputed invoice within the 30-day term set out above, the supplier is entitled to claim statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998 (as amended by the Late Payment of Commercial Debts Regulations 2002), which applies to qualifying business-to-business transactions.
Statutory interest accrues at a rate of 8% per annum above the Bank of England base rate in force on the date the debt becomes overdue.
The current statutory rate can be checked at gov.uk (search 'late commercial payments: charging interest'). It moves in line with changes to the Bank of England base rate and is not fixed.
In addition to interest, the supplier may claim fixed compensation for debt recovery costs under the Act: £40 for debts under £1,000; £70 for debts of £1,000 up to £9,999.99; and £100 for debts of £10,000 or more, together with any further reasonable recovery costs actually incurred.
A supplier's right to claim statutory interest and compensation applies automatically by law and is not dependent on it being requested at the time of invoicing.
4. Our commitment
Luma Education Recruitment is committed to paying suppliers fairly and promptly, and treats prompt payment as core to maintaining good supplier relationships. This policy is reviewed annually, or sooner if there is a change in the underlying legislation. Questions about these terms, or about a specific invoice, should be directed to the contact below.
5. Contact
Daniel Benson — daniel.benson@lumaedrec.com — Luma Education Recruitment
Approved by Daniel Benson, Director, on 3 September 2026.
This policy is Luma Education Recruitment's statement of payment practice, issued to suppliers and used as supporting evidence for third-party assessments, including the Fair Payment Code (Gold Award, September 2026).