Compliance calculator
Late Payment Interest Calculator
Work out statutory interest and compensation you can charge on overdue business invoices (Bank of England base rate + 8%).
Rates checked 17 July 2026
| Statutory rate: 11.75% a yearBank of England base rate (3.75%) + 8%, as at 14 Jul 2026 | £0.80 / day |
| Interest for 30 daysSimple interest — it does not compound | £24.14 |
| Fixed compensation per invoice£40 under £1,000 · £70 under £10,000 · £100 at £10,000+ | £70.00 |
| Total to demand | £2,594.14 |
Business-to-business invoices only — the Late Payment of Commercial Debts (Interest) Act 1998 doesn't apply to consumer sales, and a contract can substitute its own "substantial remedy" for late payment. The statutory rate is fixed for six-month periods (set each 30 June and 31 December from the Bank of England base rate then in force). You can also recover reasonable debt-recovery costs above the fixed sum. Chasing a persistent late payer? An accountant or bookkeeper can run credit control for you.
Figures use published 2026/27 UK tax rates and are simplified estimates for guidance only — not tax, accountancy, or financial advice. Your actual liability depends on your full circumstances; confirm withGOV.UK or a qualified accountant before acting.