Email template

Notice that late payment interest has been added: email template

When to send it: When you decide to start charging statutory interest on a B2B invoice.

Dear [Client name],

Invoice [Invoice number] for [Amount] was due on [Due date] and remains unpaid.

As permitted by the Late Payment of Commercial Debts (Interest) Act 1998, I have added:

- Statutory interest at [Interest rate]% a year from [Day after due date]: [Interest to date] to today, increasing by [Daily interest] a day
- Fixed compensation: [Compensation]

The balance now due is [Total owed]. An updated statement is attached.

Please arrange payment as soon as possible.

Yours sincerely,
[Your name]
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Why this works

  • Statutory interest is only available on business-to-business debts.
  • Send an updated statement rather than a new invoice for the interest — it keeps the paper trail clean.
  • Interest runs on the full amount including VAT, but you do not charge VAT on the interest.

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