UK late commercial payments
Free, fast calculator with automatic rate‑change splits and fixed compensation. Enter your invoice details here. Your interest breakdown will appear below. Late payment of invoices cripples UK businesses. Don't tolerate it.
Under UK law on late payment of commercial debts, a supplier can charge statutory interest on overdue invoices. This is simple interest at the Bank of England base rate + 8%, applied from the day after the invoice becomes late. Unless you agreed a different credit period, invoices are treated as due within 30 days of the invoice date (or receipt of goods/services, if later).
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It applies the Bank of England base rate in force during each period, plus 8%. Where the base rate changes, the calculation splits the timeline automatically.
From the day after the invoice becomes late. If no payment date was agreed, that is 30 days after the invoice date (or receipt of goods/services, if later).
No. Statutory interest is simple daily interest. The daily rate is (base+8%) × invoice ÷ 365.
Yes. In addition to fixed compensation, you may recover reasonable costs of chasing the debt if they exceed the fixed sum.
If you did not agree a payment date, a payment is late 30 days after the invoice date or delivery of goods/services (whichever is later). Public authorities usually have 30 days. Businesses can agree up to 60 days or longer if it is fair to both parties.
The statutory rate is 8% plus the Bank of England base rate for business-to-business debts. You cannot claim statutory interest if your contract sets a different rate, and you cannot use a lower rate with public authorities.
Annual statutory interest = (base rate + 8%) × invoice amount. Daily interest = annual ÷ 365. Example: £1,000 at 8.5% = £85/year ≈ £0.23/day.
No. Statutory interest applies to late commercial payments between businesses (including sole traders) and to public sector buyers, not consumer purchases.
Yes. If you decide to add statutory interest to the amount owed, send a new invoice for the interest and compensation.
Statutory interest uses the Bank of England base rate in force during each period. If the base rate changes, apply the old rate up to the change date and the new rate from that date onward. This calculator splits the timeline automatically when rates change.