how to calculate interest

Hello Bobsy1
There is not a easy answer to your question as you have a number of options. It would really depend on your relationship with the debtor. You could claim interest and compensation on both invoices from the dates they became overdue. Despite what they have already paid you. That would mean compensation charges of £70.00 and £40.00 plus a daily interest rate running from the day after 30/11/12 and 7/12/12. Although partial payments have been made, interest continues on the same daily rate as the original invoice amount.

There is more information about part payments in the users guide that can be found here. goo.gl/E0uXs

However you may think it fairer, and possibly easier, to get your money by concentrating on the outstanding £588.78. Possibly charge interest and compensation from the date when you should have received the last instalment?

If it was me, I would calculate what is owed from the due dates then use that information to make them pay the outstanding amount. If they don't pay within an agreed time, then make a full claim. If it did go to court (hopefully not!) then the judge may take a different view and remit part or all of the interest. They can't however remit the compensation.

Sorry. Not a straightforward reply and maybe someone else would have a different opinion.


Best regards

David