Invoice Late Payment Interest & Statutory
Calculate statutory interest, daily late fees, and fixed legal debt recovery compensation for unpaid commercial B2B invoices (UK, EU & US).
Invoice & Timeline Parameters
Statutory Claim & Compensation Summary
Statutory Demand / Late Payment Notice Letter
About this tool
How to use it
- Select your applicable legal jurisdiction (UK Late Payment Act, EU Directive 2011/7/EU, or US Commercial Standard).
- Enter the unpaid invoice principal balance and the original contractual payment due date.
- Verify the reference central bank rate (e.g. Bank of England or ECB) and statutory margin (+8.0% standard).
- Click 'Calculate Statutory Claim' to view the total legally owed, daily interest accrual, and fixed debt recovery fee.
- Click 'Copy Late Payment Notice' to generate a formal demand letter to send to the debtor's accounts payable department.
Why it matters
Unpaid commercial invoices severely choke small business cash flow. Many freelancers and vendors are unaware that under UK and EU law, creditors have a statutory right to claim interest and fixed compensation fees—even if late fees were never written into the original contract.
When to use it
Use this calculator whenever an invoice passes its contractual due date (typically net 30), preparing formal payment reminder letters, issuing statutory demand letters, or calculating interest for small claims court filings.
Good to know
In the UK, under the Late Payment of Commercial Debts (Interest) Act 1998, statutory interest is set at Bank of England base rate + 8%. Fixed compensation fees are £40 for debts under £1,000, £70 for debts between £1,000 and £9,999.99, and £100 for debts of £10,000 or more. Under EU Directive 2011/7/EU, minimum compensation is €40.
Common questions
Can I claim late payment interest if it wasn't in my contract?
Yes. In the UK and European Union, statutory late payment legislation applies automatically to all commercial business-to-business (B2B) transactions, regardless of whether late fees were mentioned in your initial agreement or invoice.
What is the statutory interest rate in the UK?
The UK statutory late payment interest rate is the Bank of England base rate plus 8%. For example, if the base rate is 5.0%, the annual statutory interest rate is 13.0%, accruing on a daily pro-rata basis (13% / 365 days).
How does statutory debt recovery compensation work?
Under UK law, creditors are entitled to a fixed compensation fee per overdue invoice: £40 for invoices under £1,000; £70 for invoices from £1,000 up to £9,999.99; and £100 for invoices of £10,000 or greater. In addition, creditors can claim reasonable debt collection costs exceeding these amounts.
Does this law apply to consumer clients (B2C)?
No. Statutory late payment legislation (such as the UK 1998 Act or EU 2011 Directive) applies strictly to commercial B2B transactions between businesses. For consumer debts, you may only charge late interest if explicitly agreed in your original signed consumer contract.
How far back can I claim late payment interest?
Under the UK Statute of Limitations, you can claim statutory late payment interest and compensation on unpaid commercial debts dating back up to 6 years (5 years in Scotland).