Late payment compensation per invoice or just one amount for the whole balance?

Hello Marc
Apologies for a slow reply.

Compensation charges vary on the amount being claimed.

£40.00 up to £999.99
£70.00 up to £9999.99
£100.00 for £10.000 or over.

As to the question of compensation added to each invoice, or batching the invoices together and making one claim.... Well this has been debated on this forum with differing opinions.

Most seem to argue that you should make a claim for compensation on each invoice.

When the invoice amounts are small and interest low, it may seem unrealistic to to have say 3 invoices of £20.00 each then charge £40.00 for each one. In this case it may be fairer to batch the 3 invoices together and make one claim of £40.00.

The legislation states that you are entitled to 'reasonable compensation' which basically leaves the whole issue to personal judgement.

So charge what you think would be 'reasonable'.

Regards

David