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GETTING PAID ON TIME

Late payment interest calculator

Work out what the law lets you add to a late business invoice: interest at 8% above the Bank of England base rate, plus a fixed sum towards the cost of chasing.

The date agreed in your terms. If there wasn’t one, 30 days after the customer got the invoice or the work.
Leave as today if it’s still unpaid.
3.75% was the Bank of England base rate on 30 June 2026, so it applies to invoices that became overdue between 1 July and 31 December 2026. For an invoice that became overdue earlier, use the base rate on the 30 June or 31 December before it did. Bank of England base rate history

Enter the invoice amount and the date it was due.

Days late
Interest rate
Interest a day
Interest so far
Fixed compensation£40, £70 or £100 (under £1,000; £1,000 to £9,999.99; £10,000 or more)

You can claim:

Worked out the way GOV.UK shows it. Not legal advice.

When It Applies

  1. Between businesses only.

    It doesn’t apply to invoices to consumers.

  2. Unless your contract says otherwise.

    If your terms set their own late-payment interest rate, that rate applies instead.

  3. When a payment is late.

    After the date agreed in your terms, or 30 days after the customer got the invoice or the work, if you didn’t agree one.

  4. How to claim it.

    Send a new invoice that adds the interest and compensation. You can claim the fixed compensation once per invoice.

  5. Whether to claim it is your choice.

    Many owners keep it for customers who pay late again and again.

Rules and method from GOV.UK, Late commercial payments: charging interest and debt recovery.

Questions Owners Ask

Who can charge statutory late payment interest?
A business owed money by another business, unless their contract sets its own interest rate. It doesn’t apply to invoices to consumers.
What is the rate?
8% a year above the Bank of England base rate in force on the 30 June or 31 December before the payment became late.
Can I add a fixed fee as well?
Yes, once per invoice: £40 on invoices under £1,000, £70 from £1,000 to £9,999.99, and £100 from £10,000.
Do I have to charge it?
No. Whether to claim it is your choice.

Rather not chase at all? Reminders can go out from your own email, before and after the due date, and you only deal with the disputes.

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