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Recent changes to the law* mean you can now claim between £40 and £100 compensation for the late payment of invoices under certain circumstances. You can also claim interest for each day the payment is overdue.

To find out if you’re eligible to issue a late payment demand letter simply read the following statements:

  1. The debt was incurred in the supply of goods and services.
  2. Your debtor bought from you for business purposes.
  3. The debts are not consumer credit agreements.
  4. There are no other types of late payment interest in your terms and conditions.

If all four statements are true, you should be able to make a late payment demand. In that case we’ll do all the calculations for you but if you’re curious to see the amount you can legally add to your debt, go to our compensation calculator and enter in your details.

In the event that you cannot make a late payment demand you can still send a solicitors’ letter before action.

*Under the Late Payment of Commercial Debts (Interest) Act 1998 and subsequent regulations

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