About Late Payment Interest
Statutory interest and fixed compensation on late commercial invoices, calculated to the penny from the current Bank of England base rate.
What is on this site
One question, "late payment interest calculator", answered with a calculator that works on the page with no account, 3 guides on the questions around it, a data table you can cite (the figures and their method), and the sources every figure rests on.
- Statutory interest rate on late payments: base rate plus 8%: The UK statutory interest rate is 11.75% in 2026: base rate 3.75% plus 8%. Why the rate is fixed twice a year on 30 June and 31 December, and how to find your rate.
- Late payment compensation: the £40, £70 and £100 fixed sums: Section 5A of the 1998 Act gives a fixed sum for recovering a late commercial debt: £40 under £1,000, £70 to under £10,000, £100 at £10,000 and above, plus real costs.
- When is a commercial payment legally late? The 30 and 60 day rules: With no agreed date, payment is late 30 days after the invoice or delivery. Agreed terms are capped at 30 days for public authorities and 60 days for businesses.
Reach us
Contact for a question about the site, or enquiries@latepaymentinterest.co.uk. The legal terms are on Terms and Privacy.
Late Payment Interest is an information site operated by Ellul Solutions Ltd. It is not affiliated with gov.uk, the Bank of England or any government body, and nothing here is legal advice. Statutory rates and thresholds are quoted from the official sources listed, with the date we read them; confirm the current base rate and take advice on your own contract before claiming.