-
Have been overpaid (only 2 grand) by a client who left me about 30k in debt for most of last year.
https://www.gov.uk/late-commercial-payments-interest-debt-recovery/charging-interest-commercial-debt
The interest you can charge if another business is late paying for goods or a service is ‘statutory interest’ - this is 8% plus the Bank of England base rate for business to business transactions. You can’t claim statutory interest if there’s a different rate of interest in a contract.
Example
If your business were owed £1,000 and the Bank of England base rate were 0.5%:
the annual statutory interest on this would be £85 (1,000 x 0.085 = £85)
divide £85 by 365 to get the daily interest: 23p a day (85 / 365 = 0.23)
after 50 days this would be £11.50 (50 x 0.23 = 11.50)30,000 x 0.085 = £2550
£2k is about 286 days (41 weeks) -worth of statutory interest.
You are reading a single comment by @Emyr and its replies.
Click here to read the full conversation.
Emyr
Have been overpaid (only 2 grand) by a client who left me about 30k in debt for most of last year. I am in absolutely no rush to pay them back or notify them of their error, though concede I'm happy to do so if they contact me and bring it to my attention.
Before I consider that, are there any internet lawyers who can advise if they're liable for their own negligence and is there any chance I'm not obliged to return the funds? My moral compass sits at zero degrees at the best of times. With these utter toads it's in the negative numbers. I'd be happy to donate it to charity. I just don't want to be of any benefit to these people in any way - assuming it doesn't provide me problems down the line.
Presuming that I can't just Arkell v. Pressdram them when the time comes?