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Statutory interest · Late Payment of Commercial Debts (Interest) Act 1998

Late Payment of Commercial Debts Interest Calculator

Estimate statutory interest (8% + Bank of England base rate) and fixed compensation on a qualifying overdue UK business invoice. A different contractual remedy may apply instead.

The unpaid amount owed to you.
The date the invoice should have been paid.
For interest starting 1 Jul–31 Dec 2026: 8% + the 3.75% Bank Rate in force on 30 Jun. Editable.
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Statutory interest calculator — 8% plus the Bank of England base rate

Under the Late Payment of Commercial Debts (Interest) Act 1998, a qualifying late B2B debt can carry statutory interest and fixed compensation without a specific late-payment clause. GOV.UK notes that statutory interest cannot be claimed where the contract sets a different interest rate.

1. Statutory interest — for statutory interest that starts between 1 July and 31 December 2026, the rate is 11.75% a year: 8% plus the 3.75% Bank Rate in force on 30 June 2026. For interest starting in another half-year, use the Bank Rate in force on the immediately preceding 30 June or 31 December. Interest runs from the day after payment was due until it is paid.

2. Fixed compensation — £40, £70 or £100 by debt size, chargeable once for each qualifying late payment in addition to interest:

Debt under £1,000£40
Debt of £1,000 to £9,999.99£70
Debt of £10,000 or more£100

Rates and compensation bands: GOV.UK — charging interest on commercial debt. Base rate: Bank of England.

Commercial debt interest — how it is worked out

The interest is a daily figure: the invoice amount, times the annual rate, divided by 365, times the number of days the payment is late. So a £5,000 invoice paid 30 days late at 11.75% earns about £48 in interest, plus £70 fixed compensation — £118 in all. The calculator above does this for your figures.

Common questions

How much interest can I charge on a late invoice?
For a qualifying B2B debt, the statutory rate is 8% a year plus the Bank of England base rate from the day after it was due, with fixed compensation of £40 / £70 / £100 by debt size. A different contractual rate may apply instead.
What rate applies?
For statutory interest starting from 1 July to 31 December 2026, 11.75% a year applies: 8% plus the 3.75% Bank Rate in force on 30 June. For another start period, use the Bank Rate in force on the immediately preceding 30 June or 31 December.
Do I need a clause in my contract?
No. The interest and compensation apply by law whether or not your contract mentions them, unless the contract sets its own substantial remedy.
Can I claim the compensation as well as the interest?
The fixed compensation is £40 / £70 / £100 by debt size and can be charged once for each qualifying late payment, in addition to interest.
Does this cover consumer invoices?
No — only business-to-business commercial debts. Invoices to consumers are not covered.
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