Free tool
Late payment calculator
Overdue commercial invoices earn statutory interest — 8% plus the Bank of England base rate — and a fixed compensation fee under the Late Payment of Commercial Debts (Interest) Act 1998. Work out what you can add, and get the wording to send.
Your invoice
The rate is fixed each 30 June and 31 December for the following six months — check the current rate at bankofengland.co.uk.
What you can claim
Enter your invoice amount to see the compensation and interest you can add today.
How the rules work
Who can claim statutory interest and compensation?
Any business owed money by another business under a commercial contract, where the contract doesn't already set its own interest rate for late payment. It covers sole traders and freelancers supplying business customers too.
When does interest start running?
From the day after the agreed payment date. If no date was agreed, the law implies a 30-day default period after delivery of the invoice or the goods/services, whichever is later.
Can I claim for old invoices?
Yes — you can generally claim statutory interest on debts up to six years old (five in Scotland), even if the invoice has since been paid late.
Do I have to claim it?
No, it's your choice — but adding interest and compensation to your demand often changes a debtor's behaviour, and it can offset the cost of using a collection agency.
Demand sent and still no payment?
That's when a collection agency earns its fee. Compare vetted UK agencies on cost and recovery model — free, no obligation.