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Getting paid · UK trades

Should UK trades charge interest on late invoices?

On many business-to-business jobs you can charge statutory interest and a small recovery cost if the invoice is late — if you are entitled to, and if you actually follow through. Put the warning on the quote, not in a surprise WhatsApp.

Domestic customers are not the same as a Ltd with a purchase ledger. Do not copy a commercial threat onto a couple’s bathroom. This is general information, not legal advice.

Eighteen days late. You Google “statutory interest” and paste 8% plus Bank of England into the chat. They are a couple in a terrace. You needed a due date and a pause on extras, not a mini solicitor.

Plain English

Who they areInterest as a stick
Ltd / contractor / commercialOften yes — write it, then use it if you will
Domestic homeownerUsually chase, pause work, not a statute lecture
Subby under CISDo not mix CIS, VAT, and interest in one threat
You never wrote termsHarder to spring it after the fact

If you work for businesses, a one-liner on the quote is enough: invoices due 14 days; late commercial invoices may attract statutory interest. Then your chase can point at the paper. If you never invoice Ltds, skip the theatre.

Payment due 14 days from invoice date. For business customers, we may charge statutory interest and recovery costs on overdue invoices.

Interest does not replace stopping work or refusing the next job. It is a commercial lever. Use it when the customer is a business that understands invoices. This is not legal advice. If a sum is large or already in dispute, speak to a solicitor or a trade association.

What people miss

Pasting a statute at a family. You will lose the review and maybe the remainder. Chase the figure like a grown-up.

Threatening interest you will never invoice. They learn you shout. Send it or do not mention it.

No due date on the invoice. “Late” needs a day. Put one.

Interest instead of a deposit next time. Prevention is a deposit and staged invoices, not a percentage after the van has gone.

Related guides

FAQ

Can I add interest to a domestic invoice anyway?
Do not invent it because you are angry. Write what you will actually rely on, and get advice if it is already a fight.
What rate?
If statutory commercial interest applies, the rate is set by the rules in force — not a number you liked on a forum. Check before you invoice it.
Does a late fee on the quote count?
A clear term they accepted is stronger than a WhatsApp afterthought. Still not legal advice.
Should I wait 30 days every time?
Your quote can say 7 or 14. “Net 30” is a habit, not a law you must copy.

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WhatsApp

0:24

Alright Pencil, need a quote for Dave on High Street. Full repaint of the hall, stairs, and landing. Call it £220 for materials, 3 days labour at £200 a day, plus VAT. Address is 14 High Street, TN11 8LX.

PDFQuote_Dave_Decorating.pdfPDF

Quote for Dave Smith, TN11 8LX

Hall, stairs and landing repainting£600.00

Materials (paint, primer, protection)£220.00

Total: £820+VAT (£984)

Dave just called, he wants the 4 internal doors glossed as well. Add £120 labour for those and set the start date for next Thursday the 8th.
PDFQuote_Dave_Decorating_v2.pdfUpdated · PDF

Quote for Dave Smith, TN11 8LX

Hall, stairs and landing repainting£600.00

Materials (paint, primer, protection)£220.00

Gloss 4 internal doors£120.00

Total: £940+VAT (£1,128)

Start date: Thursday, 8th October

Preview of a UK decorator PDF quote generated with Pencil