Late Compensation Fee

Hello Melanie

Please see my response to each of your questions below.

1. You can charge interest and compensation for each unpaid or late paid invoice. You do not create an invoice to do this, you create a claim. Do do this, you can use one of our template letters:
goo.gl/xLEc6u

Or you can use The Advanced calculator which will do all the hard work for you by creating the letters and tracking the daily interest and updating the amount the debtor owes: goo.gl/1qFn3

2. The Compensation fee is added separately to each unpaid invoice.

3. The interest and compensation is calculated on the invoice total. So if not VAT registered and the invoice was £100.00 that would be your claim amount. VAT registered and the claim would be based on £120.00

4. Yes you could make the claim in a statement format. Separately may be easier though if the daily interest amount is different for each invoice or if some invoices are disputed or part paid. This may be more time consuming initially but easier to manage after.

I hope that helps and please ask any other questions. More importantly, please let us know how you get on!

Best regards

David