Late payment interest calculator (B2B)
Chasing an overdue business-to-business invoice? Work out the statutory interest (Bank of England base rate + 8%) and fixed compensation you're entitled to claim. Then create the invoice itself with the free invoice generator.
Statutory interest and compensation apply to commercial (business-to-business) debts only — they don't apply to debts owed by consumers.
Your overdue invoice
Statutory interest is the Bank of England base rate + 8%. The right base rate for each half-year is applied automatically — including when the overdue period crosses a 30 June or 31 December rate change.
What you can claim
Enter the invoice amount and the date payment was due to see the statutory interest and compensation you can claim.
How statutory late-payment interest works
Under the Late Payment of Commercial Debts (Interest) Act 1998, if another business pays you late you can claim statutory interest of 8% plus the Bank of England base rate. Interest accrues daily from the day after the payment was due until you're paid.
You can also claim a one-off fixed compensation for each late invoice: £40 (debt under £1,000), £70 (£1,000–£9,999.99) or £100 (£10,000 or more), plus reasonable recovery costs above that.
The base rate used is fixed twice a year — the rate on 31 December applies January to June, and the rate on 30 June applies July to December. Check current figures on GOV.UK.
Frequently asked questions
How much interest can I charge on a late invoice?
For business-to-business commercial debts you can charge statutory interest of 8% plus the Bank of England base rate, accruing daily from the day after the payment was due.
What is the fixed compensation for a late invoice?
You can also claim a one-off fixed sum per 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.
Which Bank of England base rate applies?
The base rate is fixed per half-year: the rate in force on 31 December applies from 1 January to 30 June, and the rate on 30 June applies from 1 July to 31 December.
Does this apply to consumers?
Statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998 applies to business-to-business transactions. Debts owed by consumers are treated differently.