How much interest can I charge on a late invoice?

Between businesses you can charge 8% a year over the Bank of England base rate, plus a fixed fee of £40, £70 or £100 by invoice size. Enter the invoice to see the total.

Your figures
Result

They owe in total

£2,493.18

Grows by £0.77 every day it stays unpaid

Interest (11.75% a year)£23.18
Fixed compensation£70.00
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Your figures, your sums - nothing is sent anywhere. Business-to-business invoices only. A different rate agreed in your contract may apply instead. General information, not legal advice.

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Questions

How much interest can I charge on a late invoice?

Between businesses, the Late Payment of Commercial Debts Act allows 8% a year on top of the Bank of England base rate. It is simple interest on the amount owed, counted from the day after the payment was due.

What is the fixed compensation?

On top of interest you can claim £40 on debts under £1,000, £70 from £1,000 to £9,999.99 and £100 from £10,000, per late invoice.

Does this work for homeowners?

No. The Act covers business-to-business debts. For a private customer, check your own terms and the Consumer Rights Act.

Which base rate should I use?

The Act uses the Bank of England rate in force on 30 June or 31 December before the payment was due. Change the rate in the box if yours differs.