The invoice
The reference rate is the Bank of England base rate on 30 June or 31 December before the due date, whichever is the latest. The 4% shown is only a placeholder: look up the right one.
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If a UK business or public body pays you late, the Late Payment of Commercial Debts (Interest) Act 1998 can entitle you to interest at 8% over the Bank of England reference rate plus a fixed sum of £40, £70 or £100 per invoice. Enter the invoice and the reference rate and see the amount, per day, to the date you choose.
The reference rate is the Bank of England base rate on 30 June or 31 December before the due date, whichever is the latest. The 4% shown is only a placeholder: look up the right one.
Interest is the unpaid amount × (reference rate + 8%) × days late ÷ 365, counted from the day after the due date. Fixed compensation is £40 for debts under £1,000, £70 from £1,000 to £9,999.99, and £100 from £10,000, per late invoice. You may also be able to claim reasonable recovery costs, which this page does not model.
The Act applies to contracts between businesses and public bodies, not consumers, and a contract can set its own late-payment remedy if that remedy is substantial. Whether it applies to your invoice is a legal question this page does not answer. For US invoices, or a contractual late fee, use the main calculator; for what an overdue invoice is worth chasing, see wait, chase, settle, or collections.
Where the Late Payment of Commercial Debts (Interest) Act 1998 applies and the contract has no substantial remedy of its own, statutory interest is 8% a year over the Bank of England reference rate, which is set on 30 June and 31 December for the following six months. Enter the rate in force for your invoice; the calculator does not guess it.
A fixed sum per late invoice by the size of the debt: £40 under £1,000, £70 from £1,000 to £9,999.99, and £100 for £10,000 or more. Reasonable recovery costs beyond that can be claimed separately, which this page does not model.
No. The Act covers contracts between businesses and public bodies for the supply of goods or services, not consumer sales, and this page is UK only. Other countries have their own rules.