NEC ECS: Late payment interest charges

are the interest charges applied for late payment included within the monthly application we have to submit to the main contractor for our sub contract works.
Are the interest charges then subject to retention if included within the monthly valuations
is interest charged on the vat element of invoices which have been paid late
The main contractor has issued a full and final account statement which has excluded the previous and current ongoing interest charges for late payment for signing before releasing the first 2.5% retention - is this correct

Under clause 50.2 interest would be covered by the second bullet point “plus other amounts to be paid to the Subcontractor”, so yes you can include it in your application for payment.

Under X16.1 retention is only deducted from the Price for Work Done to Date which is also the first bullet point under clause 50.2 therefore it is not deducted from interest or any other amounts to be paid or retained from the Subcontractor.

Under clause 50.2 any taxes are included in the amount due and VAT will be applied after you have assessed what this is, as such you will automatically recover the VAT on interest.

NEC3 contracts do not contain a final account procedure however it would be normal practice for a final account statement to include everything that the Subcontractor is entitled to i.e. it should include the interest. It is acceptable if it states that the final amount due excludes VAT.