1. Discussions forums
  3. Pay on time supporter forums
  5. The late payment of commercial debts (interest) Act.
  7. Interest Rate
× Welcome to the late payment of commercial debts (interest) act. Forum!

Post questions here regarding the use of the Late Payment Legislation

Interest Rate

More
9 years 3 months ago #1862 by roberthunter
Interest Rate was created by roberthunter
In a contract, the only stipulation in relation to interest was that interest becomes due from 14 days after the date of the invoice. I shall be grateful if someone will advise whether the interest rate is applied daily, weekly, monthly or annually and what determines the frequency.

Thank you, Robert.

Please Log in or Create an account to join the conversation.

More
8 years 7 months ago - 8 years 7 months ago #1908 by james@cpa.co.uk
Replied by james@cpa.co.uk on topic Re: Interest Rate
Hi Robert,

Sorry for the late reply but I have only just become a moderator.

To claim interest on the money you’re owed the rate is usually 8.5%.

To calculate this, use the steps below.

a) Work out the yearly interest: take the amount you’re claiming and multiply it by 0.085 (ie 8.5%).

b) Work out the daily interest: divide your yearly interest from step 1 by 365 (the number of days in a year).

c) Work out the total amount of interest: multiply the daily interest from step 2 by the number of days the debt has been overdue.

You can then add the daily amount for each that follows the calculation.

James

Please Log in or Create an account to join the conversation.

  1. Discussions forums
  3. Pay on time supporter forums
  5. The late payment of commercial debts (interest) Act.
  7. Interest Rate
Time to create page: 0.112 seconds