Stat interest and/or compensation?

We have attempted to claim statutory compensation and have left aside statutory interest because we are dealing with hundreds of transactions and the former is easy to calculate i.e. £40x y invoices (all small invoice values) whereas the interest calculation is more complicated and the value quite small in relation to statutory compensation.

My question is can one claim stat compensation without at the same time claiming stat interest?

Hi

The legislation is voluntary so it is up to you whether you exercise all your rights or some of your rights. In case you haven't seen it we have an interest calculator on the site...

payontime.co.uk/late-payment-legislation-interest-calculators

...and we would welcome your feedback on whether it helps make claiming interest easier for you.

Chris

Our pending claim is also made up of hundreds of invoices. Your claim needs to be in the right format, the right wording and right figures.

I have software in place that can run through all your invoices, payments and produce a valid demand for each and every customer, and summary of how much each customer owes in late payment.

if you want any help, feel free to contact me.

Thank you. That is my belief too. I asked because a solicitor acting for the debtor suggests that we cannot claim comp without stat int.

I have used your calculator in the long and distant past but as we handle multiple invoices we designed a spreadsheet to make the calculations.

Hi,

Re post from goldman....

It looks like the solicitor acting for the debtor is confusing himself with regards the compensation entitlement:

5A Compensation arising out of late payment.(1)Once statutory interest begins to run in relation to a qualifying debt, the supplier shall be entitled to a fixed sum (in addition to the statutory interest on the debt)..
(2)That sum shall be–.
(a)for a debt less than £1000, the sum of £40;.
(b)for a debt of £1000 or more, but less than £10,000, the sum of £70;.
(c)for a debt of £10,000 or more, the sum of £100..

Any confusion may have been caused by the wording/format of goldman's original claim.

Regarding calculation of entitlements like you I have created a spreadsheet solution. The solution allows me to calculate interest and compensation for up to 500 late paid invoices in any one year at anyone time.

Re the payontime calculator can someone explain the need for the following inputs:
1. Are you a public sector body?
2. Number of employees creditor?
3. Number of employees debtor?

Thank you Edward. No there is no confusion in my claim. But you have indeed highlighted the area of confusion. The words "Once statutory interest begins to run...". I suspect the solicitor has interpreted that to mean "Once statutory interest is claimed..." However the wording is clear, and interest begins to run when the date remains unpaid after the due date. Statutory Interest does not need to be claimed for stat compensation to apply.

I am somewhat proud of my spreadsheet because it is obviously accurate, calculates ongoing daily interest and accounts for part paid invoices. However, if you would like to mutually explore the differences, my all means contact me. I would post my url but not sure if that is permitted here.