LoadingLoadingLoadingLoadingUnder the Late Payment of Commercial Debts (Interest) Act 1998, B2B invoices accrue statutory interest at 8% over the Bank of England base rate, plus a fixed compensation sum. The rate is set twice a year, so a debt spanning 1 January or 1 July accrues at two rates — this calculator splits the period and adds the parts.
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We are not quoting the statutory figures here
The margin over base rate, the fixed compensation bands and every historical base rate need reading off the primary sources, and we have not been able to. This calculator will split the overdue period correctly across the half-years and do the interest maths — but the rates are yours to supply.
Late commercial payments: charging interest and debt recovery — GOV.UKThe principal debt, excluding any interest already claimed. Statutory interest is simple, not compound — it does not accrue on itself.
Interest runs from the day after this date.
Interest runs up to and including this date.
Enter the invoice amount, the dates and the statutory margin to see what is claimable.
Better than charging interest is not needing to. Cushty can chase overdue invoices by email on a schedule you set, and shows you what is outstanding and how late it is.
See how invoicing worksThe Late Payment of Commercial Debts (Interest) Act 1998 gives B2B suppliers a statutory right to charge interest and compensation on overdue invoices — even if the contract doesn't mention it. The rate is fixed at 8% over the Bank of England base rate, the fixed compensation steps up with the debt size, and you can claim reasonable debt-recovery costs on top.
In practice most owners don't claim it — they just chase. But the right exists, and citing it in a payment-reminder email often shifts overdue accounts. The figure also tells you whether a customer is profitable: a job that pays 60 days late is meaningfully worse than one that pays on time, and this calculator quantifies the difference.
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