Free tool · UK businesses
Late payment interest calculator
Work out the statutory interest and fixed compensation you can add to a late invoice from another business. Current rate: 11.75% a year (Bank of England base rate 3.75% + 8%).
Enter the amount and dates to see what you can claim.
Runs in your browser. Nothing you type is sent or saved. Rates checked 10 October 2026. General information, not legal advice.
How it’s worked out
The rules in four lines
Business to business only
The Late Payment of Commercial Debts (Interest) Act 1998 covers invoices to other businesses and the public sector, not to consumers.
8% over base rate
Interest is the Bank of England base rate plus 8%. The base rate used is the one on 31 December (for January to June) or 30 June (for July to December).
Simple interest, every day
From the day after the due date until payment: amount × rate ÷ 365 for each day late. No interest on interest.
Plus a fixed sum
£40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more. Once per invoice.
Rate table
Statutory interest rates since 2020
Checked against Bank of England Bank Rate history on 10 October 2026. We update this table every six months.
| Period | Base rate on | Base rate | Statutory rate |
|---|---|---|---|
| 1 Jul 2026 – 31 Dec 2026 | 30 Jun 2026 | 3.75% | 11.75% |
| 1 Jan 2026 – 30 Jun 2026 | 31 Dec 2025 | 3.75% | 11.75% |
| 1 Jul 2025 – 31 Dec 2025 | 30 Jun 2025 | 4.25% | 12.25% |
| 1 Jan 2025 – 30 Jun 2025 | 31 Dec 2024 | 4.75% | 12.75% |
| 1 Jul 2024 – 31 Dec 2024 | 30 Jun 2024 | 5.25% | 13.25% |
| 1 Jan 2024 – 30 Jun 2024 | 31 Dec 2023 | 5.25% | 13.25% |
| 1 Jul 2023 – 31 Dec 2023 | 30 Jun 2023 | 5.00% | 13.00% |
| 1 Jan 2023 – 30 Jun 2023 | 31 Dec 2022 | 3.50% | 11.50% |
| 1 Jul 2022 – 31 Dec 2022 | 30 Jun 2022 | 1.25% | 9.25% |
| 1 Jan 2022 – 30 Jun 2022 | 31 Dec 2021 | 0.25% | 8.25% |
| 1 Jul 2021 – 31 Dec 2021 | 30 Jun 2021 | 0.10% | 8.10% |
| 1 Jan 2021 – 30 Jun 2021 | 31 Dec 2020 | 0.10% | 8.10% |
| 1 Jul 2020 – 31 Dec 2020 | 30 Jun 2020 | 0.10% | 8.10% |
| 1 Jan 2020 – 30 Jun 2020 | 31 Dec 2019 | 0.75% | 8.75% |
Questions
Late payment interest: your questions
- Can I charge interest on a late invoice in the UK?
- Yes, if your customer is a business or a public sector body. The Late Payment of Commercial Debts (Interest) Act 1998 lets you add statutory interest and a fixed compensation sum to a late commercial invoice, even if your terms did not mention it. It does not apply to invoices to consumers.
- When does late payment interest start?
- From the day after the payment due date. If you agreed no date, payment is due 30 days after the customer received the invoice or the goods or services, whichever is later.
- What if my contract sets its own late payment rate?
- A contract can set its own remedy for late payment instead of statutory interest, as long as it is a substantial remedy. If yours does, that rate applies and this calculator does not.
- Can I claim more than £40, £70 or £100?
- The fixed sum is per invoice. If your reasonable costs of recovering the debt were higher, for example a collection agency fee, you can claim the difference as well.
- Do I have to claim the interest?
- No. Many businesses mention it in a reminder and waive it if the invoice is paid promptly. Telling the client the exact figure, and that it grows each day, is often enough to get paid.
Invoice Autopilot
Rather not chase at all?
Invoice Autopilot sends your invoices and polite reminders by itself until the client pays. Pay once, no subscription. Try the demo: it takes under two minutes.