Late Payment Interest: You Don't Have to Ask Nicely

Episode 160 of The Subcontractors Blueprint sees Jacob Austin take on statutory interest, the late payment charge almost no UK subcontractor ever claims despite being legally entitled to it. Jacob sets out where the entitlement comes from under the Late Payment of Commercial Debts Act 1998, why every late interim payment is its own qualifying debt, and how the statutory rate of 8% above base compares with the 5% or 2% buried in most subcontracts. He covers the TCC decisions that struck down inadequate contractual rates, the fixed compensation sums nobody claims, and what the Commercial Payments Bill could change. Work out what you are owed, then pick your moment.

KEY TAKEAWAYS

Why every late interim payment is its own debt, not something you save up for the final account.

The fixed lump sum the Act gives you on top of the interest, per late payment, that almost nobody claims.

Why a 2% above base interest clause in a main contractor's standard terms may already be worthless.

What signing "the subcontractor acknowledges this is a substantial remedy" is actually worth in front of a judge.

The one situation where a statutory interest claim genuinely fails, and why padding it out weakens the rest.

Why working out the number and demanding the money are two separate decisions you have collapsed into one.

BEST BITS

"Every late interim payment is its own unique debt."

"The contractor wouldn't think twice about charging you if it was the other direction."

"Just a contractor running his cash flow through your bank account."