UK costs and interest on late payment
When a business pays you late, the law lets you add interest and compensation to the debt. We claim it for you.
Three things you can add
These apply to business-to-business contracts, under the Late Payment of Commercial Debts (Interest) Act 1998, unless your terms set a different, substantial remedy.
Statutory interest
8% a year above the Bank of England base rate, charged daily from the day after payment was due. Use the base rate in force on 30 June or 31 December before the debt fell due.
Tool:
Fixed compensation
A fixed sum per invoice, based on its size, on top of the interest. It is added once for each invoice.
£40
Debts up to £999.99
£70
Debts of £1,000 to £9,999.99
£100
Debts of £10,000 or more
Reasonable recovery costs
If the cost of recovering the debt exceeds the fixed compensation, additional reasonable costs may be claimed. We add them to your claim wherever you are entitled to them.
When it applies
These rights apply to business-to-business debts, from the day after the payment due date, under the Late Payment of Commercial Debts (Interest) Act 1998.
Consumer (B2C) debts follow different rules: statutory interest under the Act does not apply, contractual interest can be charged if the agreement allows it, and we advise interest at the Bank of England Bank Rate only, with late payment fees of £20, £35 or £50.
This page explains the general rules and isn’t legal advice. Your contract terms can change what applies.
Want us to claim it for you?
We add statutory interest and compensation to the claim wherever you’re entitled to them, so you end up back in a no-cost position.
Free consultation, no obligation
Send us the overdue invoice today. We check the debtor’s credit for free, start contact straight away, and you only pay commission on what we collect.