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Late-payment interest.
When another business pays your company late, UK law lets you claim statutory interest and a fixed sum on top of the debt. Enter the invoice, how late it is and the base rate to see what you could claim. General information, not legal advice.
- Statutory interest rate—
- Interest accrued—
- Fixed compensation—
- Total you could claim—
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Under the Late Payment of Commercial Debts (Interest) Act 1998, statutory interest is 8% plus the Bank of England base rate set on the relevant reference date. Fixed compensation is £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more. Enter the base rate that applied — this tool does not look it up. General information only, so take your own advice before acting.
Why this matters for cashflow
Late payment is one of the biggest causes of the working-capital gap for UK companies. Knowing your statutory rights — and being willing to use them — is often cheaper than borrowing to cover the shortfall. Read the Late Payment Act, explained and size the underlying gap with the working-capital gap calculator.