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Late Payment Interest Calculator

Protect your cash flow. Calculate statutory interest (8% + Bank of England base rate) and legal compensation fees for overdue business-to-business invoices in the UK.

Calculator Inputs

£

Late Penalty Breakdown

Days Overdue:30 days
Statutory Interest (13%):£16.03
Late Payment Fixed Fee:£70.00
Total Claimable Penalty:£86.03

UK Payment Acts Rules

Under the Late Payment of Commercial Debts Act, businesses have a statutory right to charge compensation and interest on invoices that are unpaid. The fixed compensation is:

  • £40 for invoices under £1,000
  • £70 for invoices between £1,000 and £9,999.99
  • £100 for invoices over £10,000

Overdue Payment Letter Preview

Dear Customer, RE: LATE PAYMENT OF INVOICE With reference to outstanding Invoice Amount of £1,500.00 which was due on 08-07-2026. As this payment is now 30 days late, we are writing to claim statutory late payment interest and compensation fees in accordance with the Late Payment of Commercial Debts (Interest) Act 1998. The breakdown of our claim is as follows: - Principal Invoice Amount: £1,500.00 - Statutory Interest (13% per annum): £16.03 (30 days late) - Statutory Fixed Compensation Fee: £70.00 - Total Outstanding Balance: £1,586.03 Please arrange for payment of this outstanding total immediately.

Tip: Copy this text to send as an email or print as a formal late payment letter.

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