You can claim interest on the money you’re owed.
If you’re owed money by another business, you can charge interest on a late commercial payment.
For other types of debt, the rate is usually 8%.
To calculate this, use the steps below.
- Work out the yearly interest: take the amount you’re claiming and multiply it by 0.08 (ie 8%).
- Work out the daily interest: divide your yearly interest from step 1 by 365 (the number of days in a year).
- Work out the total amount of interest: multiply the daily interest from step 2 by the number of days the debt has been overdue.
If you were owed £1,000:
- the annual interest would be £80 (1000 x 0.08 = 80)
- you’d divide £80 by 365 to get the daily interest: about 22p a day (80 / 365 = 0.22)
- after 50 days this would be £11 (50 x 0.22 = 11)