Clause.

Payment

Late-payment interest and recovery costs

This is your leverage when a client drags out payment. Even if the contract says nothing, UK law lets a business charge interest and a fixed fee on late commercial invoices, so a clause that tries to strip that away is worth pushing back on. Spelling out the interest right in the contract makes it easy to invoke without an argument.

What to look for

Whether the contract gives you a right to charge interest and a fixed sum for recovery costs when the client pays late, and at what rate. Also check the contract does not try to waive or reduce your statutory rights below a meaningful remedy.

How Clause rates it

RedContract expressly excludes any late-payment interest or compensation, or sets a token interest rate that removes any real deterrent to paying late.
AmberContract is silent on late payment (your statutory rights still apply automatically, but they are not spelled out), or sets a modest contractual interest rate you should sanity-check against the statutory position.
GreenContract states interest accrues on overdue sums at a meaningful rate and allows recovery of reasonable collection costs, consistent with or better than the statutory default.

Wording you can ask for

Suggested redline
If any sum is not paid by its due date, interest shall accrue daily on the overdue amount at 8% per year above the Bank of England base rate until paid, and the Client shall reimburse the reasonable costs of recovering the debt.

The UK angle

The Late Payment of Commercial Debts (Interest) Act 1998 sets statutory interest at 8% above the Bank of England base rate and fixed compensation of £40 (debts under £1,000), £70 (£1,000-£9,999.99) or £100 (£10,000+) per invoice; these apply automatically to business-to-business debts and a contract term must give a 'substantial remedy' to displace them.

See all 23 checks in the playbook

See this on your own contract.

Paste your contract and watch these rules light up your own clauses.