Answer these questions to work out how much interest and compensation to charge on your unpaid invoice.
What you can charge
Total you can claim
To draft your new invoice:
include the amount you are owed for the original invoice
add a separate line for interest and one for compensation
add your new total – this figure is the ‘total you can claim’ in the calculator
It’s a good idea to send the new invoice with a letter explaining that you’re charging the interest you’re legally entitled to.
An example of what you can say in your letter is:
“We are exercising our statutory right to claim interest (at 8% over the Bank of England base rate) and compensation for debt recovery costs under the Late Payment legislation, because we were not paid according to our agreed credit terms.”
Send the invoice today. Interest is added daily, so it’s best to recalculate the interest later if you’re not ready to send an invoice now.