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.

For contracts dated on or after 7th August 2002 the late payment interest rate is 8% plus the reference rate. The current reference rate for the period 1st January 2006 until 30th June 2006 is 4.25%. For the previous period (1st July to 31st December 2005) the rate was 4.75%.