3. Claim debt recovery costs on late payments
You can also charge a business a fixed sum for the cost of recovering a late commercial payment on top of claiming interest from it.
The amount you’re allowed to charge depends on the amount of debt.
|Amount of debt||What you can charge|
|Up to £999.99||£40|
|£1,000 to £9,999.99||£70|
|£10,000 or more||£100|
These amounts are set by late payment legislation.
If you are a supplier, you can also claim for reasonable costs in recovering debt.
Read more on recovering debt.