PF

PayForce

UK Late Payment Recovery

Start free trial

Free calculator

UK statutory interest calculator for overdue commercial invoices.

Calculate late payment interest, fixed compensation, and the total commercial debt claim under the Late Payment of Commercial Debts (Interest) Act 1998.

Based on the Late Payment Act 1998Free, no account required

Invoice details

Enter the numbers that matter.

GBP

Use the invoice principal before interest or compensation.

Enter the invoice amount.

Interest starts after this date has passed.

Select the invoice due date.

Adjust this only if you need to calculate for another day.

Live output

Enter invoice details above to calculate what is owed.

You will see the overdue days, statutory interest, compensation, and the full legal claim here as soon as all three fields are valid.

What the law says

What is the Late Payment Act 1998?

The Late Payment of Commercial Debts (Interest) Act 1998 gives UK businesses a statutory route to charge interest when another business pays late. It is designed for commercial invoices, which is why this calculator is framed around overdue B2B payments rather than consumer debt.

The core rule is straightforward: once an invoice is overdue, interest can accrue at 8% above the Bank of England base rate. For this MVP calculator, that produces an annual rate of 11.75% using a base rate of 3.75%. The daily amount is then calculated from the invoice value and the number of overdue days.

The Act also allows fixed compensation for the cost of chasing payment. The current tiers used here are 40 GBP for invoices below 1,000 GBP, 70 GBP for invoices from 1,000 GBP up to 9,999.99 GBP, and 100 GBP for invoices of 10,000 GBP or more. The calculator combines that compensation with accrued interest so you can see the total legal claim in one number.

This page is a practical starting point, not legal advice. It helps you understand the value of a potential claim quickly, so you can decide whether to send a formal reminder yourself or use PayForce to automate the next step.

Important legal disclaimer

This calculator is for general information only and is not legal advice. It estimates statutory interest and fixed compensation for UK commercial invoice debts using the assumptions stated on this page. Contract terms, disputes, part-payments, court procedure, and debt-specific facts can change what you should claim.

Late payment resources

Learn how UK statutory interest, compensation, and commercial debt claims work.

UK late payment interest

Late payment interest calculator for UK commercial invoices

Use a free UK late payment interest calculator for overdue commercial invoices, statutory interest, fixed compensation, and total claim value.

Claim process

How to claim late payment interest in the UK

Learn the practical steps for claiming late payment interest on overdue UK commercial invoices, including calculation, evidence, and next action.

Fixed compensation

Late payment compensation in the UK

Understand UK late payment compensation tiers for overdue commercial invoices and calculate compensation alongside statutory interest.

Commercial debt

Commercial debt interest calculator for UK invoices

Calculate interest on overdue UK commercial debts, including statutory interest, compensation, and the total estimated claim.

Legal framework

Late Payment of Commercial Debts (Interest) Act 1998

A practical overview of the Late Payment of Commercial Debts (Interest) Act 1998 for UK commercial invoice interest and compensation.

FAQ

Common questions about statutory interest.

How is UK statutory interest calculated?

For late commercial payments, statutory interest is calculated using the invoice amount multiplied by the annual statutory rate, divided by 365, then multiplied by the number of overdue days.

What is the current statutory interest rate in the UK?

For this calculator MVP, the statutory annual rate is 11.75%, made up of 8% plus a Bank of England base rate of 3.75%.

Can I charge statutory interest on any unpaid invoice?

No. This calculator is intended for late B2B commercial payments. Whether a claim applies depends on the commercial relationship, contract terms, and the dispute context.

What is the fixed compensation for late payment?

The fixed statutory compensation is 40 GBP for invoices below 1,000 GBP, 70 GBP for invoices from 1,000 GBP up to 9,999.99 GBP, and 100 GBP for invoices of 10,000 GBP or more.

Do I need a solicitor to claim statutory interest?

Not always. Many businesses first calculate the claim themselves and send a professional payment demand. Complex disputes or court action may still justify legal advice.

How many days overdue before statutory interest applies?

Statutory interest is calculated from the point an invoice becomes overdue. The exact overdue date depends on the agreed payment terms, the invoice due date, and the commercial context.

What compensation can I claim for late payment?

For qualifying commercial debts, fixed compensation may be 40 GBP, 70 GBP, or 100 GBP depending on the invoice value. This calculator applies those tiers alongside accrued interest.

Does this calculator apply to consumers?

No. This calculator is designed for UK business-to-business commercial invoices, not consumer debts or personal lending.

Can I claim debt recovery costs?

The Late Payment framework includes fixed compensation tiers. Additional recovery costs can be fact-specific, so treat this calculator as a starting point and seek professional advice where needed.

From calculator to action

PayForce turns this calculation into a professional recovery workflow.

Track invoices, calculate interest automatically, and move from reminder to formal claim without rebuilding the numbers every day.

Start with PayForce