What is the rate for late payment of commercial debts?

• A. 2%
• B. 8%
• C. 4.5%
• D. 0%

Answer: (B)

The rate for late payment of commercial debts is the Bank of England base rate plus 8 percentage points. The total isn’t a fixed 8% in all cases; it moves with the base rate, but the additional charge is 8 percentage points. That’s why the option reflecting 8% is the best choice here: it represents the fixed component added on top of whatever the base rate is. For example, if the base rate is 0%, the rate would be 8%; if the base rate is 1%, the rate would be 9%. The other fixed percentages don’t align with the statutory scheme.