It's a serious issue - late or non- payment of debts can cause cashflow problems - and could even force you out of business. Notification can be oral, but it is better to put it in writing. The rate of interest was set at the official discount rate plus a percentage, currently 8%.

Send me an email alert when this guide changes actions. Table 1 month of death due date interest starts from january 31 july 1 august febru From 1 november 1998 small businesses can claim statutory interest for late payment from large businesses and most of the public sector. Thus if the discount rate were, for example 5%, statutory interest on overdues would be 13%.

Should i charge interest on late payments?Part 1 - how to calculate late payment interest. The better payment practice group and its individual members have taken reasonable care in sourcing and presenting the information. The earliest date from which a commercial contract can create a claim for interest under the late payment legislation. Some parties may agree a specific interest rate or compensation in their contract together, if so the act will not apply.