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interest question.

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musgravelab
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11 years 2 months ago #886 by musgravelab

interest question. was created by musgravelab

I have been charging a client the incorrect and have to do an adjustment. my statements show current, then 30 days, 60 days etc. my terms are 30 days and i have charged him on the 30 day and more amounts even though by the time they show 30 days, they are in fact 60 days. i also charged him on the total outstanding and not for the many late invoices. when i do the adjustments can i change tack now and charge for anything not current and also for individual invoices. i also have never charged him a late fee, can i back date these? he has been over our agreed terms for at least 2 years. how far back can i now go when re-calculating the interest.

regards
candy (carolyn)taylor

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David J
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11 years 2 months ago #887 by David J

Replied by David J on topic Re: interest question.

Hello Candy
Firstly make sure you are claiming the correct amount of interest and compensation using the interest calculators on this site. Interest and compensation start to run the day after the debt became overdue. If you do not have any agreed terms of payment, the the default for the legislation is 30 days after delivery of the goods or services.
You can charge interest AND compensation on each invoice that has not been paid OR was paid later than agreed terms or the default 30 days.
You can change interest and compensation on invoices that were paid late going back retrospectively 6 years. Obviously the longer you leave it the harder it may be to get your money but if your bookwork is in good order your chances of making a successful claim are much stronger.

Regards

David

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