Legal Disclaimer

1. Not legal advice

PayNudge is not a law firm, and PayNudge does not provide legal advice. Our calculator, guides, statutory interest notices, letters before action, contract analysis and any other content are general information to help you understand your options. Using PayNudge does not create a lawyer-client relationship.

Every situation is different. Before relying on any figure or letter in a dispute, or before starting legal proceedings, take advice from a qualified solicitor or lawyer in the relevant country.

2. UK rules in brief

The Late Payment of Commercial Debts (Interest) Act 1998 lets a business claim statutory interest on late payment from another business, unless the contract provides a substantial remedy for late payment instead. In summary:

• Interest is the Bank of England reference rate plus 8% a year, as simple interest, running from the day after payment was due.
• The reference rate is the base rate on 31 December (for debts falling due between January and June) or 30 June (for debts falling due between July and December), and it stays fixed for that debt.
• Fixed compensation is £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more, per invoice.
• Reasonable additional recovery costs may sometimes be claimed.

3. EU rules in brief

• Directive 2011/7/EU on combating late payment applies to commercial transactions between businesses and with public authorities.
• Statutory interest is at least the ECB reference rate plus 8 percentage points, set for each half-year.
• Creditors are entitled to a minimum fixed sum of €40 as compensation for recovery costs.
• Each member state implements the Directive in its own law, and several set higher rates, different compensation or extra conditions. PayNudge applies the Directive's baseline and does not model every national variation.

4. Limits of our calculations

• Reference rates change. We update them periodically, but there may be a delay, and historic rates may be corrected.
• Your contract may set a different interest rate, payment term or remedy that replaces the statutory scheme.
• Statutory schemes generally do not apply to consumers, and other countries have different rules or none.
• Figures depend on the dates and amounts you enter. Please check them.

5. Letters before action

Letter-before-action drafts follow common practice in England and Wales, including the Practice Direction on Pre-Action Conduct. Courts elsewhere have different requirements. Drafts are never sent automatically and you are responsible for their content.

6. Questions

If you spot an error in our calculations or guides, please tell us at support@paynudge.site. We can explain how a figure was calculated, but we cannot advise on your specific case.