Sole trader - charging interest on overdue invoices - advice appreciated

[LEMONAIDE]

Work with DH in a small non vat registered business and, on the whole, are really successful in getting paid on time.

We had just had an issue where I have had to chase and chase a client and I was thinking of putting some wording on both our quotes and invoices to say we would reserve the right to charge interest on overdue invoices.

This would be REALLY simple if our client were primarily other businesses but they are individuals rather than businesses.

What would you suggest with regard to rates and wording.

Im primarily thinking of using it as a deterrent rather than something we will use as a matter of course.

Have you looked at the Payontime website? There appears to be a statutory right to claim interest. Could be worth a read

Thanks cogito - the standard seems to be 8% plus Bank of england base rate. But all the guidlines and laws relate to business to business transactions, I just wondered what other people did

I've had bills (I'm not a business) for various services that come with an incentive that if I pay on time I can have a discount but, if I pay outside the agreed terms, I have to pay the full whack. That seems quite a friendly way of putting it.

Unfortunately clients are knocking the prices down before they even accept a job now so there isnt much leeway on the "discount for payment" option.