The standard rate of interest is 8% above the base rate set by the Bank of England and this is applied at the start of the 6 month period. Both parties can agree on a different rate of interest, however, this should be something that is agreed on and is considered a substantial remedy and should never be forced.

In the most part this process is relatively pain free and goes without a hitch, yet sometimes it doesn’t always go to plan.  You could end up under paying your staff, paying late, or perhaps overpaying your stuff.