Late fees explained
Each project is different. Always check your contract.
LATE PAYMENT
*Late Fee: A weekly service fee of £25 and 15 percent is payable on all overdue balances.
Small invoice example
£1000 due on 25th September, paid on 25th October.
Invoice overdue by 30 days.
Weekly Service Fee: 30 days late / 7 ≈ 5 weeks late 5 weeks late * £25 = £125
15% Debt Interest: £1000 * 15% = £150 £150 / 365.4 = £0.41 per day 30 days late * £0.41 per day = £12.32
TOTAL LATE FEES
£125 Weekly Service Fee + £12.32 Debt Interest = £137.32 added to the next invoice
Large invoice example
£10 000 due on 25th September, paid on 15th March.
Invoice overdue by 172 days.
Weekly Service Fee: 172 days late / 7 ≈ 25 weeks late 25 weeks late * £25 = £625
15% Debt Interest: £10 000 * 15% = £1 500 £1 500 / 365.4 = £4.11 per day 172 days late * £4.11 per day = £706.08
TOTAL LATE FEES
£625 Weekly Service Fee + £706.08 Debt Interest = £1331.08 added to the next invoice
* Your situation may differ, consult the contract if in doubt