advice on small claims and working out interest

harry112

Hello guys

I am in the process of making a claim using the online system. However I am having difficulties in working out the late payment interest. Can somebody please help?

The invoices below have not been paid. The time frame to pay was 28 days.

Invoice date 5th April 2010 - invoice amount is £410.63
Invoice date 13th April 2010 - invoice amount is £563.93
Invoice date 21st April 2010 - invoice amount is £815.78
Invoice date 7th May 2010 - invoice amount is £5475.00

I would greatly appreciate it if somebody could help work out how much interest I can charge.

Thanks

P.S. Does anybody in this field have some spare time to have a quick read of my claim and provide some advice?

Pitlanepiglet

Have you got a contractual rate of interest in your contract? If so that is the rate that applies. If you don't then I'd use 8% (you may not be awarded it but it's worth a try...)

so you take the invoice amount - say £1000 work out the annual rate of interest so 8% of £1000 = £80, divide £80 by 365 to get a daily rate and then times that by the number of days that each invoice has been outstanding - say 100 days = £8.00. You then show the daily rate on an ongoing basis (for the total)

Technically your claim is over the small claims limit of £5,000...you can agree with the Defendant that it sits within the SC track though. I'd bung it in and see what happens...

Can't help with the wording but make sure you are specifically claiming interest under the Supreme Court Act of whatever year - might be 1969 - if you google something like "prayer for interest" you might find it if the wording isn't already on the standard claim form.

harry112

Do I claim the interest up to the date of submitting the claim?

Equaliser123

If it is a business to business transaction and no other rate for late payment has been agreed then the Late Payment of Commercial Debts (Interest) Act applies and you are entitled to 8% above base rate (8.5% currently) plus "compensation".

If B2C then County Courts Act prescribes 8% simple interest.

Equaliser123

harry112 wrote: »

Do I claim the interest up to the date of submitting the claim?

Yes and you are required to state the amount it accrues following issue.