Every overdue B2B invoice in the UK automatically accrues statutory interest at 8% above the Bank of England base rate — plus fixed compensation charges. Most businesses never claim it.
Add your full statutory entitlement to your Letter Before Action — from £29.99.
Statutory Interest Calculator
Passed in 1998 and strengthened in 2013, this Act gives UK businesses the automatic right to claim interest on overdue commercial invoices. It was designed to tackle the culture of late payment that costs UK SMEs billions every year.
The key word is automatic. You do not need to have included an interest clause in your contract. You do not need to go to court first. The right to claim statutory interest arises the moment a B2B invoice becomes overdue.
Most businesses never claim it — either because they don't know about it, or because they're worried about damaging the relationship. But including it in a formal Letter Before Action is entirely standard practice and sends a clear signal that you know your rights.
Your Three Entitlements
Statutory Interest
~13.25% p.a.8% above the Bank of England base rate, calculated daily from the date payment was due.
Fixed Compensation Charge
£40–£100A flat fee of £40, £70, or £100 depending on the debt amount — automatic, no proof required.
Reasonable Recovery Costs
Actual costsAny reasonable costs incurred in recovering the debt beyond the fixed charge — e.g. professional fees.
Fixed Compensation Tiers
Based on 13.25% p.a. (8% above 5.25% base rate). Actual amounts depend on the current base rate.
| Debt Amount | Days Overdue | Statutory Interest | Fixed Charge | Total Claim |
|---|---|---|---|---|
| £1,000 | 30 days | +£10.89 | +£40 | £1050.89 |
| £5,000 | 60 days | +£108.90 | +£70 | £5178.90 |
| £10,000 | 90 days | +£326.71 | +£100 | £10426.71 |
| £25,000 | 120 days | +£1089.04 | +£100 | £26189.04 |
| £50,000 | 180 days | +£3267.12 | +£100 | £53367.12 |
Figures are illustrative. Actual interest depends on the Bank of England base rate at the time of calculation.
Work out the statutory interest accrued from the date payment was due. Use our calculator above or let Claim Builder do it automatically when you build your pack.
Your Letter Before Action should explicitly reference the Late Payment of Commercial Debts Act 1998, state the interest rate, and include the calculated amount. Claim Builder does this automatically.
If the debtor doesn't pay after your LBA, include the statutory interest in your court claim. The court will award it if your claim succeeds.
Claim Builder calculates your statutory interest automatically
When you build your Debt Recovery Pack, we calculate the statutory interest, fixed charge, and total claim amount — and include it all in your Letter Before Action.
If your debt is over £3,000 and involves a business debtor, a specialist can handle the entire recovery process — including calculating and claiming your full statutory interest entitlement.
Claim your full statutory interest entitlement with a professional Letter Before Action — from £29.99. Or get a free specialist review for high-value B2B debts.
We use cookies to improve your experience, analyse traffic, and personalise content.
You can accept or reject non-essential cookies. Privacy Policy
Essential Cookies
Always ActiveRequired for the site to function. Includes authentication, payment processing (Stripe), and saving your progress. Cannot be disabled.
Analytics Cookies
Help us understand how visitors use our site so we can improve it. Data is anonymised and never sold to third parties.
Marketing Cookies
Used to show you relevant content and measure the effectiveness of our communications. You can opt out at any time.