THE interest rate for late payments from businesses will remain at 11.75 per cent for the first half of 2004, according to the Better Payment Practice group.

The late payment legislation provides businesses with a statutory right to claim interest and compensation on overdue commercial debts.

The interest rate is set twice a year and is calculated by adding eight per cent to the reference rate which is the Bank of England base rate.

Statutory interest can be worked out by using the online calculator at the BPPG's website www.payontime.co.uk. The website also contains a range of credit management advice and information to help businesses prevent and overcome late payment of commercial invoices, plus a guide to the UK's late payment legislation.