Late payment interest calculator
When another business pays your invoice late, you are legally entitled to interest and compensation on top. Work out exactly what you can claim, using the current statutory rate.
Know what you are owed
Under the Late Payment of Commercial Debts rules, a late paying business owes you statutory interest plus a fixed compensation sum.
Statutory interest
Charged at the Bank of England base rate plus 8 percent, currently 11.75 percent a year, for every day the invoice is late.
Fixed compensation
A set sum on top, from £40 to £100, depending on the size of the debt.
Your right to claim
This applies to business to business debts by law, whether or not it is written in your terms.
Work out your claim
Enter the invoice amount and the dates. We default to an example, so change them to your figures.
you are entitled to claim, interest plus compensation
Based on the Bank of England base rate of 3.75 percent plus 8 percent, the statutory rate of 11.75 percent for business to business debts.
For business to business commercial debts under the Late Payment of Commercial Debts legislation. This is general information, not legal advice. The base rate shown is reviewed at each Bank of England meeting.
How the numbers work
Statutory interest is worked out as the invoice amount times the statutory annual rate, currently 11.75 percent, spread across the number of days the payment is late. On top of that sits a fixed compensation sum set in law, which rises with the size of the debt.
The two added together are what you are entitled to claim. The rate moves with the Bank of England base rate, so we keep it current. This is a guide to your entitlement, not legal advice.
Common questions
Can I really charge interest on a late invoice?
Yes. For business to business debts, the law entitles you to statutory interest and a fixed compensation sum, even if your contract does not mention it.
What is the current rate?
The statutory rate is the Bank of England base rate plus 8 percent. With the base rate at 3.75 percent, that is 11.75 percent a year.
How much is the fixed compensation?
£40 for debts under £1,000, £70 for debts up to £9,999.99, and £100 for debts of £10,000 or more.
Does this apply to consumers who pay late?
No. These statutory rules cover business to business debts. Different rules apply to consumers.
Is this legal advice?
No, it is general information to help you understand your entitlement. For a specific dispute, take proper advice.
What does this have to do with OptiFlow?
Late payers squeeze cashflow. So do overpriced bills. While you chase what you are owed, OptiFlow Watch quietly cuts your overheads so there is more room to breathe.
Ease the pressure on cashflow
Chasing late payers? Ease the pressure
While you claim what you are owed, let OptiFlow Watch cut your overheads so your cashflow has more room.