Adding interest to overdue invoice

[AC123]

Hi

I need to add interest to an invoice that has not been paid, due 31st March. Reading on the web it appears 8% over base rate is the correct amount to add, can anyone confirm this?

Thanks

[Si1295]

What's written on your invoice T's & C's, what's written on their PO T's & C's?

[Simpo Two]

I'm fairly sure you need to have stated this at the outset. Have you chased it/sent reminders or let it lie?

I think the interest malarkey is rather toothless because the obvious route forwards for the customer is just to pay the invoice sum and ignore the interest, knowing you're not likely to sue for buttons.

However if you end up at Small Claims THEN interest is added by the judge and that goes onto the claim value.

[Terminator X]

Slightly O/T imho you are better sending an invoice incl some interest then offering a discount if paid on time / early. That way all parties know the cost if paid late. As others have said you really need to state it in Ts and Cs albeit there must surely be a statutory %age that can be applied in the absence of that [yep see below link]?

https://www.gov.uk/late-commercial-payments-intere...

TX.

[Simpo Two]

Is there any issue with the goods/services provided? Any trail? Adding unexpected interest might encourage him to think of some!

If he won't pay 100% I'd suggest he won't pay 108%, unfortunately. I'd spend my time trying to get the 100%.

[EddieSteadyGo]

Simpo Two said:

I'm fairly sure you need to have stated this at the outset. Have you chased it/sent reminders or let it lie?

I think the interest malarkey is rather toothless because the obvious route forwards for the customer is just to pay the invoice sum and ignore the interest, knowing you're not likely to sue for buttons.

However if you end up at Small Claims THEN interest is added by the judge and that goes onto the claim value.

Good advice.

[Alpinestars]

AC123 said:

Hi

I need to add interest to an invoice that has not been paid, due 31st March. Reading on the web it appears 8% over base rate is the correct amount to add, can anyone confirm this?

Thanks

My understanding is that statutory interest (8 plus base), can be added to late paid B2B invoices unless there are terms relating to the invoice which provide for a “substantial contractual remedy”.

https://www.legislation.gov.uk/ukpga/1998/20/conte...