Time and money

Interest

An extra amount added to money that is paid late.

Definition

In a legal context, interest is a sum charged on an unpaid debt or awarded on a court judgment as compensation for the delay in receiving money. Statutory interest on a judgment in England and Wales runs at 8% per year. Late payment interest on commercial debts may be claimed at 8% above the Bank of England base rate.

In practice

You can claim interest from the date the debt fell due. Use the calculator on the Enforce page to calculate the amount.

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