Late Payment Calculator
Chasing an overdue commercial invoice? Under the Late Payment of Commercial Debts Act you can add statutory interest (8% plus the Bank of England base rate) plus a fixed compensation fee. Work out exactly what you’re owed - then send it.
A branded PDF demand downloads instantly - and we email you a copy with the full breakdown.
How compensation is set
Common questions
Which statutory interest rate does the calculator use?
The rate that applied on the day your debt fell overdue, not today’s. Statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998 is 8% plus the Bank of England base rate, and the base rate element is fixed on the six-monthly reference date (1 January and 1 July) that precedes the day payment became late. The calculator looks up the correct historic rate from your invoice dates and accrues daily from the day after payment was due, so an old invoice is not overstated at a newer rate.
How much late-payment compensation can I claim?
A fixed compensation sum on top of the interest: £40 for invoices under £1,000, £70 for £1,000 to £9,999, and £100 for £10,000 or more.
Does the calculator write the letter before action for me?
Yes. Once you have entered the invoice, it produces a complete letter before action with the figures already filled in - the principal, the statutory interest to date, the fixed compensation and the total now due - together with a payment deadline and a clear statement of what happens next. Copy it into an email or letterhead and send it as it stands.
Guidance only, not legal advice. Statutory interest and compensation apply to qualifying commercial debts under the Late Payment of Commercial Debts (Interest) Act 1998.
Invoice still unpaid after your letter? Compare vetted agencies for unpaid invoices - or start a free comparison. Free for creditors; the agency you choose pays for the introduction.
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