Small firms in Yorkshire which pay suppliers late could face expensive claims for accumulated interest under new laws which come into force later this year.

From November 1, small businesses will be able to claim interest from other firms if they continue to pay bills late. The Association of Chartered Certified Accountants said if, for example, a firm was two months late paying a bill of £2,000, the supplier could claim £23.

Jonathan Beckerlegge, from the Association, said: "Businesses should ensure that they maintain good long-term relations with their suppliers, otherwise quite large sums of default interest can mount up."