What is the statutory late payment interest rate in the UK?

8% a year plus the Bank of England base rate. For interest starting between 1 July and 31 December 2026 the rate is 11.75% (8% + 3.75%).

How much fixed compensation can I claim for a late invoice?

£40 for debts under £1,000, £70 for debts of £1,000 to £9,999.99, and £100 for debts of £10,000 or more, per invoice.

When does statutory interest start?

The day after the payment due date. If no payment terms were agreed, payment is due 30 days after the invoice was received or the goods or services were delivered, whichever is later.

Late payment calculator

Late payment interest calculator

Work out the statutory interest and fixed compensation you can claim on a late business invoice, under the Late Payment of Commercial Debts (Interest) Act 1998.

Invoice details

For business-to-business invoices under the Late Payment of Commercial Debts (Interest) Act 1998.

Invoice amount (including VAT)

Enter an amount greater than £0.

Payment due date

If no payment terms were agreed, use 30 days after the invoice date or delivery, whichever is later.

Enter a valid due date.

Calculate interest up to

Set to today. Change it to the date the invoice was paid, if it has been.

This date must be after the due date.

Enter an invoice amount and due date to see the statutory interest and compensation you can claim.

How statutory late payment interest works

If another business pays your invoice late, the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim interest and a fixed sum of compensation, unless your contract sets out a different rate of interest for late payment.

Interest rate: 8% a year plus the Bank of England base rate. The base rate used is the one in force on 30 June (for interest that starts between 1 July and 31 December) or on 31 December (for interest that starts between 1 January and 30 June). It then stays fixed for that debt.
When interest starts: the day after the payment due date. If no payment terms were agreed, payment is due 30 days after the invoice was received or the goods or services were delivered, whichever is later.
How it’s calculated: simple interest, charged daily. Daily interest is the invoice amount × the yearly rate ÷ 365.
Fixed compensation: a one-off sum per invoice, based on the amount owed. If your reasonable costs of recovering the debt are higher, you can claim the difference too.

Fixed compensation

Amount owed	Compensation
Up to £999.99	£40
£1,000 to £9,999.99	£70
£10,000 or more	£100

Statutory interest rates

The rate that applies depends on when interest starts to run.

Interest starts	Base rate	Statutory rate
1 Jul – 31 Dec 2026	3.75%	11.75%
1 Jan – 30 Jun 2026	3.75%	11.75%
1 Jul – 31 Dec 2025	4.25%	12.25%
1 Jan – 30 Jun 2025	4.75%	12.75%
1 Jul – 31 Dec 2024	5.25%	13.25%
1 Jan – 30 Jun 2024	5.25%	13.25%

Worked example

A £1,200 invoice was due on 1 September 2026 and paid on 14 October 2026, 43 days late. Interest started in the July–December 2026 period, so the rate is 11.75% (8% + 3.75%). Daily interest is £1,200 × 11.75% ÷ 365 = £0.39, so interest for 43 days is £16.61. Add £70 fixed compensation, for a total claim of £86.61.

This calculator is a guide, not legal advice. It doesn’t apply to consumer sales, or where your contract sets out its own late payment terms. For full details, see the government’s guidance on late commercial payments and the Late Payment of Commercial Debts (Interest) Act 1998.

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