Keywords: Part 36 late acceptance, CPR 36.17 uplift, indemnity costs, 10 percent additional damages, fixed recoverable costs Part 36, legal cost recovery, Bill of Costs drafting.
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1. When is acceptance “late”?

A Part 36 offer can be accepted any time, but if the defendant accepts after the 21-day “relevant period” the acceptance is late. CPR 36.13 makes these consequences automatic unless the court decides they would be unjust.
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2. Four built-in bonuses for claimants

Once late acceptance happens before judgment the claimant can claim:
1. Indemnity-basis costs from day 22 to settlement.
2. Interest on damages (up to 10 % above base rate) for the same period.
3. Interest on costs (also up to 10 % above base).
4. An additional amount on damages: 10 % of the first £500,000 and 5 % of the next £500,000, capped at £75,000.
In fixed-cost RTA/EL/PL cases, CPR 36.20 swaps items 1-3 for 10 % of the fixed costs and disbursements.
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3. How to capture the uplift

Diary the deadline. Note the 21-day expiry when the offer is served. Stamp late acceptance. Keep the email or consent order confirming the date. Spell it out in the Bill. Create a section headed “Part 36 Late Acceptance Uplift” and list indemnity costs period, interest calculations and the additional 10 % damages figure.

Example: A claim settling at £80,000 with acceptance 15 days late produces roughly £8,000 additional damages, about £7,800 indemnity costs (30 hours at Grade B), plus interest—over £16,000 extra that is often missed.
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4. Common pitfalls

• Forgetting the uplift in fixed-cost cases: 10 % applies to fixed costs, not to damages.
• Agreeing a global figure without itemising interest and indemnity costs - those elements get lost.
• Withdrawing the Part 36 too soon; once withdrawn, no uplift.
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5. Fast FAQs on Part 36 Late Acceptance

Q1. Does the 10 % damages bonus apply in fixed-cost RTA claims?
No. You receive 10 % of fixed costs and disbursements instead.

Q2. Are indemnity-basis costs guaranteed?
Yes, unless the court finds the consequences unjust—a rare outcome.

Q3. What if the claimant withdrew the offer?
Withdrawn offers lose the CPR 36.17 benefits.

Q4. If several claimant offers exist, which one counts?
The benefits attach to the offer that was accepted; if none were accepted, they attach to the offer the claimant beat at trial.

Q5. How are the extras awarded?
Usually agreed during detailed assessment negotiations; otherwise the court assesses them when costs are determined.
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Claim every penny your Part 36 offer earned. DMD Costs drafts Bills that include every uplift and negotiates until they’re paid. First Bill free – info@dmdcosts.co.uk.