Late Payment Interest Calculator
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Late Payment Interest in the UK: Understanding Your Rights and Options with Turner Clifford
Are you owed money by a customer or client in the UK? If so, you may be entitled to claim late payment interest and compensation under the Late Payment of Commercial Debts Interest Act. This Act allows you to recover interest on overdue payments and can help ensure that you are compensated for the financial impact of late payment.
What is Covered by the Late Payment of Commercial Debts Interest Act?
The Late Payment of Commercial Debts Interest Act applies to business-to-business debts and public sector debts in the UK. This includes any payment that is owed by one company to another, or by a public sector organisation to a supplier. If you are owed money by a customer or client and the debt is covered by the Act, you may be able to claim late payment interest and compensation.
How is Late Payment Interest Calculated?
The rate of late payment interest & compensation owed is determined by a number of factors, including the age & value of the debt, along with the Bank of England base rate. Ultimately the longer a payment has been outstanding, the higher the amount owed.
Currently you are entitled to charge a customer 8% above the Bank of England base rate for overdue debts that fall under the Act. You are also within your rights to charge the following fixed amounts based on the debt value:
Up to £999.99 - £40
£1,000 to £9,999.99 - £70
£10,000.00+ - £100
Our calculator below automatically works this out for you and adds it to the figure provided. It is also possible to apply reasonable costs of debt recovery to the amount owed which gives you the ability to recover Turner Clifford's fees directly from your debtor. For more information on the main reasons why our customers partner with us to collect their outstanding debts, click here.
Turner Clifford's Late Payment Interest & Compensation Calculator
We were underwhelmed with the late payment interest calculators available online, so we created our own. The Bank of England's base rate is constantly changing and most calculators available online are outdated. This means that you could be leaving hundreds, if not thousands of pounds on the table.
Just set the amount owed, the correct base rate and/or fixed interest value & the days overdue. Our calculator will do the rest!