The statutory interest that you can charge a business for late payment is 8% plus the Bank of England base rate, which is currently 0.1%.
Here are the steps to calculate the interest you’re owed:
- Multiply the amount you’re owed by the statutory interest rate (0.081) to get the annual statutory interest.
- Divide the annual statutory interest by 365 to get your daily interest.
- Multiply the daily interest by the number of days your invoice is overdue.