free small business advice & information
Main Menu
Hot Links
Page 3 of 9
Interest on Late Payments
2. The Rate of Interest
2.1 The law gives you the right to charge interest at the Bank of England base rate plus 8 per cent.
- For example, if the base rate is 0.5 per cent, you could charge interest at 8.5 per cent.
2.2 Rates for calculating interest are fixed for six-month periods.
- The base rate on 31 December will be used for debts becoming late between 1 January and 30 June. The rate in force on 30 June will be used from 1 July to 31 December.
- To find out the base rate, call the Bank of England's Public Enquiries Unit (020 7601 4878) or visit www.bankofengland.co.uk.
Labels: Cashflow Management, Getting Paid
Related Articles
Monthly Prize Draw!
Win £375 worth of advertising for your business.
Enter our competition by either:
- Signing up to the is4profit Small Business Newsletter or
- Entering your firm's details into the Small Business Directory