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Interest is claimed at 8% over the Bank of England's base rate.
Interest is claimed at the Bank of England rate plus 8%. The rate is listed as the 'UK clearing bank base lending rate' in the Financial Times. It is also sometimes known as the "repo" rate.
The rate that applies is the rate in force at the end of the day on which the payment was due.
The parties can agree a different rate of interest or an alternative remedy for late payment. In the case of interest, this is usually then known as 'Contractual Interest'. However, the Act requires that the agreement must provide for a 'substantial remedy'. Purchasers are not allowed to force suppliers to accept a low or nominal rate of interest, as a way of getting round this Act. Any such clause is likely to be struck out, in which case interest can be claimed at the rate described above.