Operation Solo

UK Statutory Late-Fee Calculator

The Late Payment of Commercial Debts (Interest) Act 1998 lets you charge statutory interest at the Bank of England base rate plus 8% — plus a fixed £40, £70 or £100 per invoice. Business-to-business debts only. Run the numbers, then send the email.

The statutory rate locks for six-month periods from the base rate in force on 30 June or 31 December before the debt fell overdue. Base rate verified 3.75% (held since 17 Jun 2026) → statutory rate 11.75% for debts overdue 1 Jul–31 Dec 2026.

Note: this is arithmetic, not legal advice — the Act covers B2B and public sector debts, and parties can agree other terms that amount to a "substantial remedy". Verify the current Bank of England base rate before billing.

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Common questions

What is the UK statutory late payment interest rate?

Bank of England base rate plus 8% a year, simple interest (not compound). The Bank of England base rate has been 3.75% since 17 June 2026, so for debts overdue between 1 July and 31 December 2026 the statutory rate is 11.75%. The rate locks for six-month periods from the rate in force on 30 June or 31 December.

How much fixed compensation can I claim per invoice?

A fixed sum on top of the interest: £40 for a debt under £1,000, £70 for a debt of £1,000 or more but under £10,000, and £100 for a debt of £10,000 or more. Both the interest and the compensation are outside the scope of VAT.

Does the Late Payment Act apply to consumer debts?

No. The Late Payment of Commercial Debts (Interest) Act 1998 covers business-to-business and public sector debts only. Interest runs from the day after the agreed payment date, or — where no date was agreed — from 30 days after the later of delivery and the customer receiving the invoice.