Guide

Late commercial payments: charging interest and debt recovery

Last updated: 13 March 2017

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 and what you can charge

Up to £999.99 debt - £40 charge

£1,000 to £9,999.99 debt - £70 charge

£10,000 or more debt - £100 charge

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.

Late commercial payments: charging interest and debt recovery
Claim debt recovery costs on late payments