• 0800 015 0340
  • Contact Us
    • All Offices
    • Leeds City Centre
    • Bradford City Centre
    • Huddersfield
    • Wakefield
    • Halifax
    • Morley
    • Horbury
    • Guiseley
  • IIC logo
Menu
  • About Us
  • Vision & Values
    • Visions & Values
    • Health and Wellness
    • Charity & Community
    • Prizes & Awards
    • Sponsorship
  • Your Team
  • Media
    • The Hub
    • Downloads
  • Free Training
  • Careers
  • Testimonials
Chadwick Lawrence
Trustpilot
  • Business Services
    • Employment Law
      • Employment Law
      • BoxHR
    • Complete Property Solutions
      • Complete Property Solutions
      • Commercial Property Transactions
      • Development & New Build Sales
      • Property Dispute Resolution
      • Sales & Purchases of Property
      • Commercial Land Development
      • Boundary Disputes, Land Ownership, Rights, Breach of Contract, Misrepresentation & Damage to Property
      • Leases of Commercial Premises for Landlords or Tenants
      • Land Acquisition for Residential Development & New Build Sales
      • Breaches of Leases, Rent & Service Charge Issues
      • Mortgage Finance & Security
      • Option Agreements & Conditional Contracts
      • Claims Against Property Professionals
      • Leasehold Management
      • Planning Agreements
      • Judicial Review
      • blank
      • blank
      • Lease Renewals, Termination & Dilapidations
    • Corporate & Contracts
      • Corporate & Contracts
      • Banking & Finance
      • Commercial Contracts
      • Corporate Advisory
      • Mergers & Acquisitions
      • LINK
    • Corporate Recovery & Insolvency
      • Corporate Recovery & Insolvency
      • Administration
      • Fraudulent Trading
      • Wrongful Trading
      • Preferences
      • Transactions at an Undervalue
      • Director Disqualification
      • Company Restoration
      • Winding-Up Petitions
      • Statutory Demands
      • Individual Voluntary Arrangements
      • Bankruptcy
      • Validation Orders
      • Administrative Receivership
      • Company Voluntary Arrangements
      • Liquidations
      • FAQs
    • Intellectual Property
      • Intellectual Property
      • Contracts and Licenses
      • Trademarks
      • Design Rights
      • Enforcement
      • Restrictive Covenants
      • FAQs
    • Litigation in Business
      • Litigation in Business
      • Contractual Disputes
      • Construction Disputes
      • Professional Negligence
      • Restrictive Covenant Solicitors
      • Banking & Finance
      • Debt Collection & Recovery
      • Directors and Partnership Internal Disputes
      • FAQs
      • Complete Property Solutions (Property Dispute Resolution)
      • Social Housing Management
    • Media Law and Reputation
      • Media Law and Reputation
      • Pre-Publication and Crisis Management
      • After Publication
      • Online Reputation
      • Defamation
      • Harassment
      • Privacy
    • Regulatory Services
      • Regulatory Services
      • Coroners Inquests
      • Licensing
      • Sports Regulation
      • Health and Safety Investigations
      • Trading Standards
      • Box GDPR
      • BoxLegal
      • Immigration & Workers
      • Transport Law
    • Sports Law
      • Sports Law
      • Club Services
      • Player / Coach Services
      • Regulatory Services
      • Private Client Services
  • Personal Services
    • Road Traffic & Motoring Law
      • Road Traffic & Motoring Law
      • Drink Driving
      • Speeding & Disqualification
      • Driving Without Due Care & Attention
      • Use of a Mobile Phone
      • Driving Without Insurance
      • Drug Driving
      • Dangerous Driving
      • Failure to Provide Information
      • Road Traffic and Motoring Offences
    • Media Law and Reputation
      • Media Law and Reputation
      • Pre-Publication and Crisis Management
      • After Publication
      • Online Reputation
      • Defamation
      • Harassment
      • Privacy
    • Dispute Resolution
      • Dispute Resolution
      • Property Dispute Resolution
      • Contentious Probate
      • Court Proceedings
      • Data Protection GDPR Breaches
      • Debt Matters
      • Private Contract Disputes
      • Professional Negligence
      • FAQs
    • Employment Law
      • Employment Law
      • Disciplinary
      • Grievance Advice
      • Employment Tribunal
      • Settlement Agreements
      • Restrictive Covenants
      • Exit Packages
      • FAQS
    • Family Solicitors
      • Family Solicitors
      • Divorce
      • Civil Partnership
      • Financial Settlements after Divorce or Dissolution
      • Pre-nuptial and Post-nuptial Agreements
      • Adoption
      • Grandparents Rights
      • Funding Your Case
      • Mediation Solicitors
      • Financial Provision for Children
      • Separation Agreement Solicitors
      • Cohabitation Agreements
      • Collaborative Law Solicitors
      • FAQs
    • Home & Property Services
      • Home & Property Services
      • Remortgaging
      • Buying and Selling
      • Property FAQs
    • Medical Negligence
      • Medical Negligence
      • Accident & Emergency
      • Amputations
      • Birth Injuries
      • Brain Injuries
      • Cancer Cases
      • Cardiology
      • Ear, Nose & Throat
      • Eye Conditions & Surgery
      • Gastroenterology
      • General Practitioner (GP)
      • Genetic Conditions
      • Gynaecology
      • Neurology / Nerve Damage
      • Orthopaedics & Rheumatology
      • Paediatrics
      • Respiratory Disorders
      • Spinal Cord Injuries
      • Surgery
      • Urology & Renal
      • Vascular Conditions & Vascular Surgery
    • Personal Injury Solicitors
      • Personal Injury Solicitors
      • Animal Related Injury Claims
      • Armed Forces Injury Claims
      • Slip, Trip or Fall Accident Claim
      • Accident At Work Claims
      • Road Traffic Accident Solicitors
      • FAQs
    • Wills & Probate Solicitors
      • Wills & Probate Solicitors
      • Disputed Wills
      • FAQs
      • International Legal Matters
      • Lasting Powers of Attorney (LPA)
      • Succession Planning
      • Trusts
      • UK Tax Planning
    • Court of Protection
      • Court of Protection
      • Lay Deputyship Advice
      • Personal Injury Trusts
      • Professional Deputyships
      • Statutory Wills
  • Business Services
    • Business Services
      • Employment Law
        • Employment Law
        • BoxHR
      • Complete Property Solutions
        • Complete Property Solutions
        • Commercial Property Transactions
        • Development & New Build Sales
        • Property Dispute Resolution
        • Sales & Purchases of Property
        • Commercial Land Development
        • Boundary Disputes, Land Ownership, Rights, Breach of Contract, Misrepresentation & Damage to Property
        • Leases of Commercial Premises for Landlords or Tenants
        • Land Acquisition for Residential Development & New Build Sales
        • Breaches of Leases, Rent & Service Charge Issues
        • Mortgage Finance & Security
        • Option Agreements & Conditional Contracts
        • Claims Against Property Professionals
        • Leasehold Management
        • Planning Agreements
        • Judicial Review
        • blank
        • blank
        • Lease Renewals, Termination & Dilapidations
      • Corporate & Contracts
        • Corporate & Contracts
        • Banking & Finance
        • Commercial Contracts
        • Corporate Advisory
        • Mergers & Acquisitions
        • LINK
      • Corporate Recovery & Insolvency
        • Corporate Recovery & Insolvency
        • Administration
        • Fraudulent Trading
        • Wrongful Trading
        • Preferences
        • Transactions at an Undervalue
        • Director Disqualification
        • Company Restoration
        • Winding-Up Petitions
        • Statutory Demands
        • Individual Voluntary Arrangements
        • Bankruptcy
        • Validation Orders
        • Administrative Receivership
        • Company Voluntary Arrangements
        • Liquidations
        • FAQs
      • Intellectual Property
        • Intellectual Property
        • Contracts and Licenses
        • Trademarks
        • Design Rights
        • Enforcement
        • Restrictive Covenants
        • FAQs
      • Litigation in Business
        • Litigation in Business
        • Contractual Disputes
        • Construction Disputes
        • Professional Negligence
        • Restrictive Covenant Solicitors
        • Banking & Finance
        • Debt Collection & Recovery
        • Directors and Partnership Internal Disputes
        • FAQs
        • Complete Property Solutions (Property Dispute Resolution)
        • Social Housing Management
      • Media Law and Reputation
        • Media Law and Reputation
        • Pre-Publication and Crisis Management
        • After Publication
        • Online Reputation
        • Defamation
        • Harassment
        • Privacy
      • Regulatory Services
        • Regulatory Services
        • Coroners Inquests
        • Licensing
        • Sports Regulation
        • Health and Safety Investigations
        • Trading Standards
        • Box GDPR
        • BoxLegal
        • Immigration & Workers
        • Transport Law
      • Sports Law
        • Sports Law
        • Club Services
        • Player / Coach Services
        • Regulatory Services
        • Private Client Services
  • Personal Services
    • Personal Services
      • Road Traffic & Motoring Law
        • Road Traffic & Motoring Law
        • Drink Driving
        • Speeding & Disqualification
        • Driving Without Due Care & Attention
        • Use of a Mobile Phone
        • Driving Without Insurance
        • Drug Driving
        • Dangerous Driving
        • Failure to Provide Information
        • Road Traffic and Motoring Offences
      • Media Law and Reputation
        • Media Law and Reputation
        • Pre-Publication and Crisis Management
        • After Publication
        • Online Reputation
        • Defamation
        • Harassment
        • Privacy
      • Dispute Resolution
        • Dispute Resolution
        • Property Dispute Resolution
        • Contentious Probate
        • Court Proceedings
        • Data Protection GDPR Breaches
        • Debt Matters
        • Private Contract Disputes
        • Professional Negligence
        • FAQs
      • Employment Law
        • Employment Law
        • Disciplinary
        • Grievance Advice
        • Employment Tribunal
        • Settlement Agreements
        • Restrictive Covenants
        • Exit Packages
        • FAQS
      • Family Solicitors
        • Family Solicitors
        • Divorce
        • Civil Partnership
        • Financial Settlements after Divorce or Dissolution
        • Pre-nuptial and Post-nuptial Agreements
        • Adoption
        • Grandparents Rights
        • Funding Your Case
        • Mediation Solicitors
        • Financial Provision for Children
        • Separation Agreement Solicitors
        • Cohabitation Agreements
        • Collaborative Law Solicitors
        • FAQs
      • Home & Property Services
        • Home & Property Services
        • Remortgaging
        • Buying and Selling
        • Property FAQs
      • Medical Negligence
        • Medical Negligence
        • Accident & Emergency
        • Amputations
        • Birth Injuries
        • Brain Injuries
        • Cancer Cases
        • Cardiology
        • Ear, Nose & Throat
        • Eye Conditions & Surgery
        • Gastroenterology
        • General Practitioner (GP)
        • Genetic Conditions
        • Gynaecology
        • Neurology / Nerve Damage
        • Orthopaedics & Rheumatology
        • Paediatrics
        • Respiratory Disorders
        • Spinal Cord Injuries
        • Surgery
        • Urology & Renal
        • Vascular Conditions & Vascular Surgery
      • Personal Injury Solicitors
        • Personal Injury Solicitors
        • Animal Related Injury Claims
        • Armed Forces Injury Claims
        • Slip, Trip or Fall Accident Claim
        • Accident At Work Claims
        • Road Traffic Accident Solicitors
        • FAQs
      • Wills & Probate Solicitors
        • Wills & Probate Solicitors
        • Disputed Wills
        • FAQs
        • International Legal Matters
        • Lasting Powers of Attorney (LPA)
        • Succession Planning
        • Trusts
        • UK Tax Planning
      • Court of Protection
        • Court of Protection
        • Lay Deputyship Advice
        • Personal Injury Trusts
        • Professional Deputyships
        • Statutory Wills

You are here:Home > Media > Legal News > Late Payment of Commercial Debts

  • Quick Jump
    • About Us
    • BoxHR
    • Business Services
    • Careers
    • Client Care & Complaints
    • Contact Us
    • Cookie Policy
    • Development and Plot Sales
    • Divorce Solicitors
    • Downloads
    • Financial Conduct Authority Investigation
    • Health and Wellness
    • Legal About Us
    • Make a payment
    • Media
    • Media
    • Meet Your Managing Partner
    • National Minimum Wage Investigations
    • Perks For Our People
    • Personal Services
    • Pricing Transparency
    • Privacy Notice
    • Prize Draw Terms & Conditions
    • Property Dispute Resolution
    • Seminar Sign In
    • Separation Specialist Solicitors
    • Sitemap
    • START
    • Team
    • Terms & Conditions
    • Testimonials
    • The Chadwick Lawrence Way
    • The Hub
    • Transport Law
    • We are Yorkshire's Legal People
    • Yorkshire Lawyer Network
Late Payment of Commercial Debts

14
Mar 2023

Late Payment of Commercial Debts

What is the Late Payment of Commercial Debts (Interest) Act 1998?

The Late Payment of Commercial Debts (Interest) Act creates a statutory right to claim interest on the late payment of certain debts arising under commercial contracts for the supply of goods or services.

For the legislation to apply, the debt must be:

  • Arising out of a contract where the parties are businesses or public authorities; and,
  • ‘Due’, subject to the terms of the contract

For the debt to be ‘due’, this will either be the agreed payment day expressed in the contract, or in absence of this clause, will be 30 days after the sum initially became due.

After these requirements have been met, Section 1 of the Act will allow the creditor to charge ‘statutory interest’. This interest is at the rate of 8 percent over base rate per annum.

The term “base rate” used above is defined in the Glossary to the CPR as the interest rate set by the Bank of England which is used as the basis for other banks’ rates. This is currently 4 percent, and as a result would mean that the current statutory interest rate would be 12 percent.

Where the 1998 Act applies, the claimant is also entitled to a small amount of statutory compensation for the inconvenience of having to recover the debt, this is in accordance with Section 5A. This compensation is applied to each invoice in the following categories:

(a)  for a Debt less than £1,000, the sum of £40;

(b)  for a Debt of £1,000 or more, but less than £10,000, the sum of £70;

(c)  for a Debt of £10,000 or more, the sum of £100.

Along with the statutory compensation, Section 5A(2A) of the Act will allow the claimant to recover Reasonable Costs where the costs of recovery to the Claimant are not met by the statutory compensation. For example, if the compensation amounts to £100 but the costs incurred by the claimant hiring Solicitors amounted to £150, the claimant would claim £50 reasonable costs to make up the difference.

How Acclaim use this Act to help you 

At Acclaim, we use the 1998 Act to minimise the client’s exposure to legal costs. By applying the 1998 Act, Acclaim are able to offer clients a cost neutral recovery. 

 

This procedure is implemented by us at the beginning of a claim when setting up the new matter. We will calculate all interest, and compensation owed to our clients, when setting up the claim. This ensures that throughout the entirety of the claim, the correct costs are being included and specifically set out to all parties, this includes our experts carefully and concisely explaining all costs in the Particulars of Claim leaving no stone unturned and making sure that our clients will recover all the costs that they deserve. 

Acclaim have the necessary expertise and experience in these matters and are able to assist you during the process of recovering commercial debts. 

Contact 

If you require assistance with debt recovery, or are interested in finding out more about our services, then you can contact a member of our team below: 

 

Matt Perry 

Associate 

Recoveries Manager 

Tel: 0113 2258847 

Email: Mattperry@acclaim.law 

 

Sean Thornhill 

Recoveries Executive 

Tel: 0113 2258853 

Email: Seanthornhill@acclaim.law 

 

Dan Hirst 

Partner 

Tel: 0113 2258815 

Email: Danhirst@acclaim.law

< Back to Media Hub

  • Like this ? Share with friends
Comparing Mobile Gaming Experience: App vs. Browser at R2PBet – Which is Better for You?

12
Jun 2025

Comparing Mobile Gaming Experience: App vs. Browser at R2PBet – Which is Better for You?

Mobile Gaming Experience at R2PBet: App vs. Browser Mobile gaming has become an integral part of the modern gaming landscape, providing players with flexibility and convenience. The Explore all features on R2p bet allows players to engage in a comprehensive gaming experience directly from their mobile devices. This article delves into the mobile gaming experience…

Read More

7 Crucial Measures for Ensuring Player Safety and Security at Seven Casino

12
Jun 2025

7 Crucial Measures for Ensuring Player Safety and Security at Seven Casino

Ensuring player safety and security measures at Seven Casino Seven Casino has gained a reputation for being one of the most popular online gaming platforms, and many users are eager to learn Why users enjoy Seven casino at UK. With a user-friendly interface and a vast array of games, the platform provides a robust environment…

Read More

Get in touch


  • 0800 015 0340
  • info@chadlaw.co.uk

Social Media


featured image
Chadwick Lawrence
  • Pricing Transparency
  • Legal About Us
  • Client Care & Complaints
  • Privacy Notice
  • Cookie Policy
  • Terms & Conditions
  • Sitemap

© Copyright 2025. Website design by Fantastic Media.

*The following are trading names/styles of Chadwick Lawrence LLP, Chadwick Lawrence Solicitors, Chadwick Lawrence, Yorkshire’s Legal People, Chadlaw, Acclaim

‹›×
    Leave a Message

    This field is hidden when viewing the form
    Name(Required)