Paid late?
Charge for it
The statutory interest at 8% over base rate and the fixed compensation you can add to a late business invoice.
£0.00
Add the amount owed, the date it was due and the date it was paid (or today).
The invoice total, including VAT if you charged it.
The agreed due date. With none agreed, 30 days after the customer got the invoice or the goods or service, whichever was later.
The day it was paid. Leave it as today for a debt still unpaid.
The rate is fixed for the life of the debt at the base rate on the 30 June or 31 December before interest started. You cannot claim statutory interest if your contract sets its own rate, and it applies to business and public sector customers, not consumers. Send a new invoice for the interest and compensation.
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<a href="https://taptax.co.uk/tax-calculator/late-payment-interest">Late payment interest calculator by TapTax</a>
</p>- Statutory interest
- Interest a business can charge another business, or a public sector body, that pays late, set by the Late Payment of Commercial Debts (Interest) Act 1998: 8% a year over the Bank of England base rate.
How the rate is set
The rate is 8% plus the Bank of England base rate, but not today’s base rate. It uses the base rate on the 30 June or 31 December before interest started, and it stays at that rate until the debt is paid, however the base rate moves in between. Interest starts the day after the payment was due.
| Interest starting in | Base rate on | Statutory rate |
|---|---|---|
| July to December 2026 | 30 June 2026: 3.75% | 11.75% |
| January to June 2026 | 31 December 2025: 3.75% | 11.75% |
| July to December 2025 | 30 June 2025: 4.25% | 12.25% |
| January to June 2025 | 31 December 2024: 4.75% | 12.75% |
| July to December 2024 | 30 June 2024: 5.25% | 13.25% |
| January to June 2024 | 31 December 2023: 5.25% | 13.25% |
Base rates checked against the Bank of England on 25 September 2026.
Working out the interest
Multiply the amount owed by the statutory rate to get a year’s interest, divide by 365 for a day’s, and multiply by the days it is late. A £3,000 invoice due on 30 June 2026 and paid 60 days late runs at 11.75%: £0.97 a day, £57.95 of interest, plus £70 compensation, so £127.95 in all.
Fixed compensation
On top of interest you can charge a fixed sum towards the cost of chasing the debt. It depends only on the size of the debt, is charged once per payment and does not grow with time.
- £40 on a debt up to £999.99
- £70 on a debt of £1,000 to £9,999.99
- £100 on a debt of £10,000 or more
If chasing the debt costs more, a supplier can also claim reasonable recovery costs beyond the fixed sum.
When you cannot claim it
- Your contract sets its own rate. A contractual late payment rate replaces statutory interest. With a public authority you cannot agree a lower rate.
- The customer is a consumer. The Act covers business to business contracts, not sales to individuals.
- It is not late yet. With no agreed due date, payment is late 30 days after the customer receives the invoice or the goods or service, whichever is later. The invoice due date calculator works it out.
Not the same as HMRC interest
This is interest one business charges another. Interest HMRC charges on late tax is a different rate under different rules: see HMRC late payment interest and the late filing penalty calculator.
- Statutory interest is 8% a year over the Bank of England base rate.
- The base rate is the one on the 30 June or 31 December before interest started, fixed for that debt.
- Interest runs daily from the day after the due date; compensation is a one-off fixed sum by debt size.
- A contract rate replaces statutory interest, and consumers are not covered.
Related calculators
Frequently asked questions
How much interest can I charge on a late invoice?
Statutory interest of 8% a year over the Bank of England base rate, from the day after the payment was due. With the base rate at 3.75% on the last reference date, that is 11.75% a year, charged by the day.
Which base rate do I use?
The base rate on the 30 June or 31 December immediately before interest started to run. It stays fixed for that debt until it is paid, even if the base rate changes.
What fixed compensation can I add?
£40 on a debt under £1,000, £70 on £1,000 up to £9,999.99, and £100 on £10,000 or more. It is charged once per payment, on top of interest.
Can I charge statutory interest to a consumer?
No. Statutory interest applies to contracts between businesses, including public sector customers. It also does not apply if your contract sets its own late payment rate.
How do I claim it?
Send the customer a new invoice for the interest and compensation, showing how you worked them out. If it stays unpaid, the same figures go into a letter before action.
Know the moment an invoice is late.
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Get started freeWhere these figures come from
Rates checked against GOV.UK and the Bank of England on 25 September 2026.