FREE TOOL
Late payment calculator.
Chasing an invoice that's weeks overdue? See what you can legally add under UK law, then copy a straight-talking notice to send.
The light grey figures are a generic example — just start typing to use your own.
WHAT YOU CAN CHARGE
Interest keeps building at £0.79 a day.
READY-MADE NOTICE
Reminder of overdue payment Invoice total: £2,400.00 Days overdue: 45 Under the Late Payment of Commercial Debts (Interest) Act 1998 I am entitled to charge statutory interest at 12.00% per year (8% plus the Bank of England base rate) along with fixed compensation for recovering the debt. Statutory interest to date: £35.51 Fixed compensation: £70.00 Total now due: £2,505.51 Interest continues at £0.79 per day until the invoice is settled. Please arrange payment as soon as possible and I'll consider the matter closed.
How late payment charges work
When you invoice another business and they pay late, the Late Payment of Commercial Debts (Interest) Act 1998 lets you charge statutory interest of 8% above the Bank of England base rate, plus fixed compensation of £40 on debts under £1,000, £70 up to £9,999.99 and £100 on £10,000 or more.
Statutory interest applies to business-to-business work. For domestic customers, your own written terms set out what you can charge. This calculator is a guide, not legal advice.
Common questions from trades
What law lets me charge interest on a late invoice?
The Late Payment of Commercial Debts (Interest) Act 1998. It applies to business-to-business work and gives you statutory interest of 8% above the Bank of England base rate, running from the day after payment was due.
Can I charge statutory interest to a homeowner?
No — statutory interest only covers business customers. On domestic jobs, whatever your written terms say is what you can charge, so put a late payment clause on your quotes and invoices.
What are the £40, £70 and £100 compensation amounts?
On top of interest you can claim fixed compensation for the hassle of chasing: £40 on debts under £1,000, £70 from £1,000 to £9,999.99, and £100 on £10,000 or more. It's one payment per invoice, not per reminder.
When does an invoice officially count as late?
If you agreed payment terms, the day after they run out. If nothing was agreed, the default is 30 days after the customer gets your invoice or the work is finished, whichever is later.
Do I have to chase interest, or is there a better way?
You don't have to claim it, and most trades never do. It's usually easier to flip the incentive: give the customer a small discount for paying within 30 minutes of the invoice landing, so the money is in before you leave the drive.
Other free tools for your job
CIS deduction calculator
20% or 30% CIS deductions on labour.
Chaser message generator
Chasing texts that keep customers on side.
Chasing interest is the hard way to get paid.
Flip the incentive instead: Paid30 offers your customer a small discount for paying within 30 minutes by card, Apple Pay or Google Pay — so the invoice is settled before it can ever go late.
- No monthly fee
- No card machine needed
- Keep 100% of your rate
- CIS & VAT handled
Sign up takes 3 minutes — you only pay when you get paid.