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