What the Act is used for
The Act is commonly used when a business invoice is overdue and the creditor wants to calculate statutory interest and fixed compensation.
It supports a more structured recovery process by turning an unpaid invoice into a clear claim with defined numbers.
The core calculation
The calculation starts with the invoice amount, the annual statutory rate, and the number of overdue days.
For this calculator MVP, the annual statutory rate is 11.75%, based on 8% plus a Bank of England base rate of 3.75%.
What the calculator does not decide
The calculator does not decide whether your contract overrides or affects the claim, whether the invoice is disputed, or whether legal action is appropriate.
It gives a practical estimate for general information and should be checked against the facts of the specific debt.
FAQ
Common questions
Is this page legal advice?
No. This page and calculator provide general information only. They are not legal advice and do not replace a qualified solicitor.
Why does the calculator use 11.75%?
For this MVP, the calculator uses 8% plus a Bank of England base rate of 3.75%, producing an annual statutory rate of 11.75%.