Calculate the statutory interest and compensation you can charge on overdue B2B invoices under the Late Payment of Commercial Debts Act 1998.
This calculator computes the statutory interest and compensation you can charge on overdue invoices under the Late Payment of Commercial Debts (Interest) Act 1998. UK businesses have a legal right to charge 8% above the Bank of England base rate on late B2B payments.
Note: Based on the Late Payment of Commercial Debts (Interest) Act 1998. The current Bank of England base rate is used in the calculation. This applies to B2B transactions only — consumer debts have different rules.
Statutory interest applies to B2B debts only. The current BoE base rate is 4.5%, giving a statutory rate of 12.5%. Last updated: April 2026.
| Invoice amount | £5,000.00 |
| VAT | Not included |
| Debt subject to interest | £5,000.00 |
| Statutory interest rate | 12.5% p.a. |
| Daily interest rate | 0.03425% |
| Days overdue | 60 days |
| Statutory interest | £102.74 |
| Fixed compensation | £70.00 |
| Total claimable | £172.74 |
| Debt Amount | Fixed Compensation |
|---|---|
| Under £1,000 | £40 |
| £1,000 – £9,999.99 | £70 |
| £10,000 or more | £100 |
You can also claim reasonable debt recovery costs if they exceed the fixed compensation amount.