Late payment interest calculator
An overdue invoice earns interest by law. See what a late-paying client owes you today.
HelloNoa contracts cap this at 8% above base: higher rates risk being struck out as penalties.
Prefilled with the rate held on 30 July 2026. Check the current rate (strictly, the statutory scheme fixes the reference rate each 30 June and 31 December).
Total the client now owes
£0
0 days overdue at 0% a year
Interest: £0
Fixed compensation: £0
Common questions
How much interest can I charge on a late invoice in the UK?
For business clients, the Late Payment of Commercial Debts (Interest) Act 1998 gives you statutory interest at 8% above the Bank of England base rate, plus fixed compensation of £40, £70 or £100 per invoice depending on the debt size, plus reasonable recovery costs. For consumer clients you charge whatever rate your contract sets.
When does late payment interest start running?
Statutory interest runs from the day after the due date on the invoice. If no payment date was agreed, the law makes payment late 30 days after your client receives the invoice or you deliver the work, whichever is later. Interest is simple, calculated daily, not compounded.
Do I need a clause in my contract to charge statutory interest?
No. Against business clients the statutory right exists even without a contract clause. But if your contract sets its own interest rate, that rate applies instead of the statutory 8%, provided it is a substantial remedy. Against consumers you do need a contract term, which is why HelloNoa's consumer contracts include one.
What is the fixed compensation for late payment?
Per overdue invoice from a business client: £40 for debts under £1,000, £70 from £1,000 to £9,999.99, and £100 for £10,000 or more. This is on top of the interest.
Is UK late payment law changing?
Yes, it is about to get stronger. The Commercial Payments Bill, presented to Parliament in May 2026, would cap business-to-business payment terms at 60 days (30 days for public bodies), void longer terms, and stop clients contracting below the statutory 8% rate. It is not law yet, so this calculator applies today's rules.
How this is worked out
Statutory interest for a late commercial debt is 8% above the Bank of England base rate, plus fixed compensation of £40, £70 or £100 depending on the size of the debt, under the Late Payment of Commercial Debts (Interest) Act 1998. Enter your own contract rate instead where your contract sets a substantial remedy.
Sources: GOV.UK: late commercial payments, interest and debt recovery costs · Late Payment of Commercial Debts (Interest) Act 1998 · Bank of England: current base rate
Rules last checked 6 August 2026. Rates and thresholds change; this is general information, not legal, tax or financial advice.
This calculator gives an indicative figure, not legal advice. For the full picture read late payments: your rights in the UK.
Never chase a late invoice by hand again
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