Late Payment Calculator
Chasing an overdue commercial invoice? Under the Late Payment of Commercial Debts Act you can add statutory interest (8% plus the Bank of England base rate) plus a fixed compensation fee. Work out exactly what you’re owed — then send it.
A branded PDF demand downloads instantly — and we email you a copy with the full breakdown.
How compensation is set
Common questions
How much interest can I charge on a late commercial invoice?
On overdue commercial (business-to-business) invoices you can charge statutory interest at 8% plus the Bank of England base rate, under the Late Payment of Commercial Debts (Interest) Act 1998. The rate is fixed on the six-monthly reference date for when your debt fell overdue, and interest accrues daily from the day after payment was due — the calculator applies the right rate for your dates automatically.
How much late-payment compensation can I claim?
A fixed compensation sum on top of the interest: £40 for invoices under £1,000, £70 for £1,000 to £9,999, and £100 for £10,000 or more.
What is a letter before action?
A formal written demand for payment that sets out the debt, the interest and compensation owed, and a deadline (commonly 7 days) before you escalate to recovery action or court. The calculator generates a ready-to-send one for you.
Guidance only, not legal advice. Statutory interest and compensation apply to qualifying commercial debts under the Late Payment of Commercial Debts (Interest) Act 1998.
Invoice still unpaid after your letter? Compare vetted agencies for unpaid invoices — or start a free comparison. Free for creditors; the agency you choose pays for the introduction.
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