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A simple but effective way to calculate late payment interest.
Late Payment Legislation Act 1998
Under the Act you are entitled to recover Interest on Overdue Accounts together with Debt Collection Costs on a fixed scale. Working out the interest and cost is not straightforward and we hope our 'calculator' will help you. The calculation is based on the factural rules.
The compensation entitlement varies in accordance with the size of the debt:
Size of unpaid debt Sum to be paid to the creditor
Up to £999.99 = £40.00
£1,000.00 to £9,999.99 = £70.00
£10,000.00 or more = £100.00
Interest Rates
The Bank of England base rate on 31st December will be the reference rate for: 1st January to 30th June
The Bank of England base rate on 30th June will be the reference rate for: 1st July to 31st December
| Period |
Reference Rate |
Interest Rate (Reference rate plus 8%) |
| 1st July - 31st December 2011 |
0.5% |
8.5% |
| 1st January - 30th June 2011 |
0.5% |
8.5% |
| 1st July - 31st December 2010 |
0.5% |
8.5% |
| 1st January - 30th June 2010 |
0.5% |
8.5% |
| 1st July - 31st December 2009 |
0.5% |
8.5% |
| 1st January - 30th June 2009 |
2% |
10% |
| 1st July - 31st December 2008 |
5% |
13% |
| 1st January - 30th June 2008 |
5.5% |
13.5% |
| 1st July - 31st December 2007 |
5.5% |
13.5% |
| 1st January - 30th June 2007 |
5% |
13% |
| 1st July - 31st December 2006 |
4.50% |
12.50% |
| 1st January - 30th June 2006 |
4.50% |
12.50% |
| 1st July - 31st December 2005 |
4.75% |
12.75% |
| 1st January - 30th June 2005 |
4.75% |
12.75% |
| 1st July - 31st December 2004 |
4.50% |
12.50% |
| 1st January - 30th June 2004 |
3.75% |
11.75% |
| 1st July - 31st December 2003 |
3.75% |
11.75% |
| 1st January - 30th June 2003 |
4% |
12% |
| 7th August - 31st December 2002 |
4% |
12% |
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