Statutory Late Payment Interest & Compensation Calculator
Under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses, freelancers, and contractors are entitled by law to claim 8.0% + Bank of England base rate daily interest, plus a statutory compensation fee of £40, £70, or £100 per overdue invoice.
Invoice Details
Statutory Entitlements Under the 1998 Act
1. 13% Statutory Interest
Accrues daily at 8% above the Bank of England reference rate (currently 13% total). Cannot be contractually waived or reduced by a large corporate client.
2. Automatic Compensation
A non-negotiable statutory fee (£40, £70, or £100 per invoice) added automatically to cover the administrative inconvenience of chasing payment.
3. Reasonable Debt Recovery Costs
Under the 2013 amendments, if your reasonable debt collection costs exceed the fixed compensation, you can claim the full difference.