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 amount. This calculator does both — including the daily interest figure if you want to keep the meter running.
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Adjust to the current Bank of England base rate — statutory interest is 8% above that. Check bankofengland.co.uk for today's figure before relying on the calculation for a formal demand.
Effective interest rate
13.25%
Bank of England base rate + 8%
Daily interest
£0.54
Statutory interest
£24.50
Fixed compensation
£70.00
£40 for debts up to £999.99, £70 for £1,000–£9,999.99, £100 for £10,000 and above.
Total claim
£94.50
Statutory interest is calculated on the VAT-exclusive amount and only applies to B2B (commercial) debts. Consumer transactions are governed by different rules. Always check current BoE base rate before relying on this for a formal demand.
The 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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