Work out the statutory interest and fixed compensation you can claim on an overdue commercial invoice.
For business-to-business invoices under the Late Payment of Commercial Debts (Interest) Act 1998. It runs entirely in your browser. Nothing you enter is sent, stored or logged.
Under the Late Payment of Commercial Debts (Interest) Act 1998 a business that is paid late for a commercial invoice can claim statutory interest on the overdue amount and a fixed sum in compensation on top. Both are set by statute. Neither carries VAT.
This tool estimates both. It covers commercial business-to-business invoices in England and Wales, which is what Vindox recovers.
The rate is 8 percentage points above the Bank of England base rate. On a £5,000 invoice at an 11.75% statutory rate, interest runs at a set amount for every day the debt stays unpaid.
The base rate used is the one in force on the 30 June or 31 December immediately before interest starts to run. That rate is fixed for the whole overdue period even if the base rate moves later. Using a later or current rate is the common error. This calculator uses the fixed reference rate for your interest start date.
On top of interest you can claim a fixed sum per qualifying invoice. It is £40 for a debt under £1,000, £70 for a debt from £1,000 to £9,999.99 and £100 for a debt of £10,000 or more.
Authority: Late Payment of Commercial Debts (Interest) Act 1998 section 6 and the Late Payment of Commercial Debts (Rate of Interest) (No. 3) Order 2002.
Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998 a business can charge statutory interest on an overdue invoice owed by another business. The right applies by law and does not need to be written into the contract, unless the contract sets its own substantial remedy for late payment.
It is 8 percentage points above the Bank of England base rate. With the base rate at 3.75%, the statutory rate is 11.75% for a debt that became late in 2026. The rate is set by the base rate in force on the 30 June or 31 December before interest starts to run. It then holds for the whole overdue period.
Yes. The right to statutory interest applies by law to a qualifying commercial debt. It does not need to appear on the invoice or in the contract to be claimed.
It is a fixed sum per overdue invoice on top of interest. £40 for a debt under £1,000, £70 for a debt from £1,000 to £9,999.99 and £100 for a debt of £10,000 or more.
No. Statutory interest and the fixed compensation sum are not subject to VAT.
If a commercial customer has gone past the point where a reminder works, Vindox recovers the invoice and builds a court-ready file behind it. No recovery, no fee.
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