How to work out interest for court claim form

Hello Heather

Can I ask you what online claim service you are using?

Also are the invoices for the same amount or different?

Finally are all the invoices after the 1st July 2009?

Regards

David

Hi Heather

I have never used Money Claim online (and please correct me if I am wrong) but I presume the page you are referring to is the Claim Particulars section. Here you have a choice to claim interest under the county court act which is not what you are doing. You are using a different act which is the Late Payment of Commercial Debts (Interest) Act 1998. The county court act works on a rate of 8% and does not include the right to claim interest.

So you need to set the check box to 'no'. The screen then changes to show a text box where you can enter a statement of what you are claiming and why.

So I would put here that you are Claiming interest under the 'Late Payment of Commercial Debts (Interest) Act 1998'

Then for each invoice I would put:

Your invoice number
Client reference number
Total Amount of the invoice.
Compensation owed on the invoice (dependent on the invoice amount).
Number of days overdue to date.
Interest reference rate used (8.5%)
Total interest owed to date.
The daily interest rate.
Total owed to date.


Now this is where things get a little complicated.

Interest owed should be calculated from the date the debt became overdue.

The part payment should pay off the compensation and interest owed to the date of the part payment first, then the invoice amount. Daily interest will then continue to accrue after the date of the part payment.

The forth invoice which has been paid but was paid late will have a fixed amount of interest owed plus compensation.

There is a possibility that you may prefer to charge one claim for compensation rather than compensation on each invoice depending on the amounts owed and the dates overdue.

Confusing.... Most definitely! It is important to get your claim correct otherwise it could cost you money which you are entitled to.

The new Advanced Statutory Interest Calculator will work all of this for you. Until this is officially launched though I will gladly help you put together the figures required for your claim.

You can contact me via the contact us page here

Kind regards

David