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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; 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.