How to Calculate Late Payment Interest Under UK Law

Act as a specialist consultant.

**Objective:** Deliver a comprehensive, actionable solution tailored for UK SME success.

Here is the improved business prompt template, focusing on enhanced clarity, persuasiveness, and directness to maximize results, while strictly maintaining the original structure and variables:

**Improved Business Prompt Template:**

> **Subject: Urgent Statutory Demand for Overdue Commercial Debt Payment**
>
> A valued B2B client currently owes a total undisputed amount of **[Amount | text]** and this payment is now severely overdue, being **[Days Late | number]** days past the agreed terms.
>
> Utilizing the full enforcement power afforded by the 'Late Payment of Commercial Debts (Interest) Act 1998', draft a **highly formal and legally assertive letter** strictly demanding immediate remittance. This demand *must* explicitly calculate and include:
>
> 1. The precise statutory interest accrued to date (calculated using the current **Bank of England base rate + 8%**).
> 2. The maximum permissible statutory compensation fee, choosing the most persuasive figure between **£40 and £100** as defined by the Act, to be added to the outstanding total.