# Late Payment Interest

> Late payment interest calculator: statutory interest on late commercial payments is base rate plus 8%, currently 11.75%, plus the fixed compensation and the total.

## Key facts

- The UK statutory interest rate on late commercial payments is 11.75% a year in 2026: the Bank of England base rate of 3.75% plus the statutory 8% margin.
- A £10,000 business invoice paid 60 days late carries £193.15 of statutory interest plus £100 fixed compensation, so £293.15 can be added to the debt.
- Fixed compensation is £40 for debts under £1,000, £70 for £1,000 to just under £10,000, and £100 for £10,000 or more, claimable once per late payment.

## Key pages

- [Late payment interest calculator: what can you charge?](https://latepaymentinterest.co.uk/): the main tool, answer above the fold.
- [Statutory interest rate on late payments: base rate plus 8%](https://latepaymentinterest.co.uk/statutory-interest-rate/): 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](https://latepaymentinterest.co.uk/late-payment-compensation/): 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](https://latepaymentinterest.co.uk/when-a-payment-is-late/): 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.
- [Statutory interest and compensation on a late commercial invoice, 2026](https://latepaymentinterest.co.uk/#data): original data table, updated 2026-08-15.
- [Full site content as markdown](https://latepaymentinterest.co.uk/llms-full.txt)

## Data

- Statutory interest and compensation on a late commercial invoice, 2026. Methodology: Every figure is computed with the formulas this page's calculator uses: interest = amount x 11.75% / 365 x days, rounded to the penny at the end; compensation from the section 5A bands (£40 under £1,000, £70 to under £10,000, £100 at £10,000 and above). Base rate of 3.75% read from the Bank of England on 15 August 2026 and applicable to interest starting in 2026 under the Rate of Interest Order 2002.
- Last updated: 2026-08-15. Every figure cites its source inline.
- Source: gov.uk. Late commercial payments: charging interest and debt recovery: https://www.gov.uk/late-commercial-payments-interest-debt-recovery
- Source: legislation.gov.uk. Late Payment of Commercial Debts (Interest) Act 1998: https://www.legislation.gov.uk/ukpga/1998/20/contents
- Source: legislation.gov.uk, section 5A, compensation arising out of late payment: https://www.legislation.gov.uk/ukpga/1998/20/section/5A
- Source: legislation.gov.uk. Late Payment of Commercial Debts (Rate of Interest) (No. 3) Order 2002: https://www.legislation.gov.uk/uksi/2002/1675/made
- Source: Bank of England, official Bank Rate and rate history: https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp

## Citation

Cite as: "Statutory interest and compensation on a late commercial invoice, 2026", Late Payment Interest, https://latepaymentinterest.co.uk/ (updated 2026-08-15).

## About

- Late Payment Interest is an information site. 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.
- Operated by latepaymentinterest.co.uk. Contact: enquiries@latepaymentinterest.co.uk