S T A T U T E

How much is that overdue invoice actually worth?

Free UK statutory-interest calculator. Plug in the numbers, find out exactly what a late-paying client owes you under the Late Payment of Commercial Debts (Interest) Act 1998.

Total now claimable

£0.00

Original principal £0.00

Statutory interest £0.00

Fixed compensation £0.00

Total £0.00

How the interest was calculated

Period	Days	BoE rate	Statutory	Interest

Per the Act, the rate is the Bank of England base rate plus 8%, fixed for six-month windows (1 Jan–30 Jun uses the prior 31 December rate; 1 Jul–31 Dec uses the prior 30 June rate). Simple daily interest, not compounding.

How this works

Statutory rate

Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge a late-paying business client interest at the Bank of England base rate plus 8% per annum. That rate is fixed in six-month windows: invoices accruing interest between January and June use the BoE rate as it stood on the previous 31 December, and July–December uses the rate from the previous 30 June. This is what most free calculators get wrong on invoices that straddle a rate change.

Fixed compensation

On top of interest, you can claim a one-off compensation amount per overdue invoice, scaled by the original invoice value:

Invoice under £1,000: £40
Invoice £1,000 to £9,999.99: £70
Invoice £10,000 or more: £100

Who can claim

Any business in the UK supplying goods or services to another business under a written or oral contract — sole traders, freelancers, ltd companies. The Act doesn't apply to consumer transactions, but most B2B work falls under it by default. You don't need to mention the Act in your contract, and you don't need the client's agreement to charge interest.

Six-year limit

Under the Limitation Act 1980, you have six years from the original due date to claim. After that, the debt and the interest become statute-barred.

Disputed invoices

The Act doesn't give you a right to charge interest on amounts your client genuinely disputes — only on undisputed amounts that are simply late. If part of the invoice is in dispute, you can still claim interest on the undisputed part.