Interest charge on unpaid invoice

[steve23]

Hi,

I know I've seen people advised to do this at times, but what is allowed when it comes to putting interest on an unpaid invoice ?

If nothing is stated in the contract are you allowed to do it ?

And does there have to be a reasonable amount of time that the invoice is overdue for, and how much interest can you charge ?

Thanks

Steve

 

[SelectCM]

Hi Steve,

You can charge interest from the date the invoice became due.

You can charge statutory late interest on the invoice amount.

Thanks,
Tom
SELECT CREDIT MANAGEMENT LIMITED

 

[obscure]

This site http://www.late-payment-law.co.uk/ provides information on The "Late Payment of Commercial Debts (Interest) Act 1998" and includes a calculator that will work out what you can charge.

 

[Merchant UK]

I use this site http://payontime.co.uk/late-payment-statutory-interest-calculator

You can claim interest on any overdue invoices and starting from the day after the invoice due date.

You may want to inform your customer or add the following on any overdue invoices

We are exercising our statutory right to claim interested and compensation charges under the Late Payment of Commercial Debts [Interest] Act 1998, as amended and supplemented by the Late Payment of Commercial Debts Regulations 2002.

works for me, Good luck