3. Claim the interest
You can claim interest on the money you’re owed.
The interest will be calculated for you if you claim for an unspecified amount.
You need to work out the interest yourself if you’re claiming for a fixed (‘specified’) amount of money.
Work out the interest
If you’re owed money by another business, you can charge interest on a late commercial payment.
For other types of debt, the rate is usually 8%.
To calculate this, use the steps below.
Work out the yearly interest: take the amount you’re claiming and multiply it by 0.08 (which is 8%).
Work out the daily interest: divide your yearly interest from step 1 by 365 (the number of days in a year).
Work out the total amount of interest: multiply the daily interest from step 2 by the number of days the debt has been overdue.
If you were owed £1,000:
- the annual interest would be £80 (1000 x 0.08 = 80)
- you’d divide £80 by 365 to get the daily interest: about 22p a day (80 / 365 = 0.22)
- after 50 days this would be £11 (50 x 0.22 = 11)