Statutory Interest
1. To calculate the "Statutory Interest" of 8% you must take 8% of the amount of your claim. For example, if your claim is for £3,000 the Statutory Interest of 8% would be £240.
2. Take the Statutory Interest figure and divide it by 365, e.g. £240 divide by 365= 65p (The daily interest figure).
3. Calculate the amount of days between the date of your claim and the final hearing. For example, if you started your claim on the 22nd Sept 96 and the Final Hearing takes place on the 31st Dec 96, then this is 100 days.
4. Multiply the number of days by the Daily Interest rate figure, 65p x 100=£65. This gives you the amount of interest to be added to your claim at the end of your case.
You usually only need to work out the interest figure for the Final Hearing. You should have the figure ready for the Judge so he or she can add it to the money to be awarded to you.
If the debt has been outstanding for some time and there was an agreed date for repayment, you can calculate the interest which was due from the date of repayment to the date of your Particulars of Claim and add this to the amount you are claiming when you first start your case.
However, if you are claiming under the terms of a contract or agreement which already provides for payment of interest then you will need to calculate this from the date interest is payable under the contract to the date of the Final Hearing. Follow the same method as above but substitute the Statutory Interest of 8% with the Contract Interest rate.
How to claim in the small claims court