How to calculate 8% statutory interest for small claims (Section 69)

When claiming unpaid money, damaged property, or contractual refunds in the County Court, you are legally entitled to claim statutory interest on top of the principal debt. In England and Wales, statutory interest for consumer and private disputes is governed by Section 69 of the County Courts Act 1984.

What is Section 69 statutory interest?

Under Section 69 of the County Courts Act 1984, the court has discretionary power to award simple interest on money debts and damages. While the award of interest is technically at the judge's discretion, claiming interest at the standard statutory rate of 8% per annum (simple interest) is standard civil litigation practice.

If you do not explicitly state your claim for interest in your Particulars of Claim when issuing proceedings, the court cannot award it.

The calculation formula (step-by-step)

Section 69 interest is calculated as simple interest (it does not compound). Use this three-step formula:

1. Calculate annual interest: Multiply the principal debt by 0.08 (8%).

`Debt Amount × 0.08 = Annual Interest`

2. Calculate daily interest: Divide the annual interest by 365 days.

`Annual Interest ÷ 365 = Daily Rate`

3. Calculate total interest to date of claim: Multiply the daily rate by the exact number of days between the date the debt fell due and the date you issue your claim.

`Daily Rate × Days Overdue = Total Accrued Interest`

Worked example:

Suppose a builder owes you a refund of £4,500 that became due on 1 January 2026. You issue your court claim 180 days later on 30 June 2026:

• Annual interest: `£4,500 × 0.08 = £360.00`
• Daily rate: `£360.00 ÷ 365 = £0.9863 per day`
• Total interest to date of issue: `£0.9863 × 180 days = £177.53`
• Total sum claimed on claim form: `£4,500 + £177.53 = £4,677.53`
• Continuing daily interest: `£0.99 per day` until judgment or earlier payment.

Commercial debts: Late Payment of Commercial Debts Act 1998

If your claim is against a business for an unpaid commercial B2B invoice (for example, you are a freelancer or contractor claiming an unpaid invoice from a business client), you have much stronger statutory rights under the Late Payment of Commercial Debts (Interest) Act 1998:

• Higher interest rate: You can claim interest at 8% plus the Bank of England base rate. If the base rate is 4.5%, your statutory rate is 12.5% per annum.
• Fixed statutory compensation: You are entitled to automatic fixed compensation per overdue invoice to cover recovery costs:
• For debts under £1,000: £40 compensation
• For debts between £1,000 and £9,999.99: £70 compensation
• For debts of £10,000 or more: £100 compensation
• Reasonable recovery costs: Under Section 5A of the 1998 Act, you can also claim reasonable third-party debt collection costs that exceed the fixed compensation.

Exact wording for your Particulars of Claim

To ensure your claim for interest is legally valid and accepted by the court, include this exact pleading clause at the end of your Particulars of Claim:

"The Claimant claims interest under Section 69 of the County Courts Act 1984 at the rate of 8% per annum from [Date debt became due] to [Date of issue of claim], being [Number of days] days at the daily rate of £[Daily rate], amounting to £[Total accrued interest], and continuing at the same daily rate until judgment or sooner payment."

For a commercial business claim under the 1998 Act, adapt the clause:

"The Claimant claims interest pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 at the rate of [Rate, e.g. 12.5]% per annum from [Due date] to [Date of claim] amounting to £[Sum], continuing at £[Daily rate] per day, plus fixed compensation of £[40/70/100] pursuant to Section 5A of the Act."

Free tools & resources

• Statutory Interest 8% Calculator — calculate your exact daily rate and accrued interest in seconds
• Small Claims Deadline Calculator — calculate your 14-day filing deadline
• How to take a claim through Money Claim Online (MCOL)

Drafting your Particulars of Claim? The Casewright General Small Claims Builder automatically formats your debt schedule, calculates statutory interest to today's date, and generates compliant Particulars of Claim. Independent information directory; link is a sponsored referral.

This guide provides general procedural information for England and Wales and does not constitute formal legal advice. Sourced from Section 69 County Courts Act 1984 and CPR Part 16.

Reviewed by Sean McNamara, 2026-09-07.