Compensation Entitlement

Hello Chris

Thank you for your question

The legislation states that you are entitled to 'reasonable late payment compensation' meaning that this area is open to interpretation. Some would say batch the amounts together and one charge made, others insist that the fee should apply to each individual claim. Ultimately the courts would decide what is reasonable. So with the amounts you are talking about, £100 per claim would seem acceptable. The courts may decide to reduce the amount from £500 to say £250 but you will still be better off than charging £100 for all.

However I would suggest that you read through this discussion which talks about the late payment compensation in more detail. You will note that most respondents recommend adding compensation fee to each invoice. Also that some have had success through the courts with compensation added to each claim.

payontime.co.uk/forums/debt-recovery-costs


I hope this helps

David