[{"data":1,"prerenderedAt":153},["ShallowReactive",2],{"blog-\u002Fblog\u002Fhow-to-calculate-late-payment-interest-uk":3},{"id":4,"title":5,"author":6,"body":7,"category":142,"date":143,"description":144,"extension":145,"image":146,"meta":147,"navigation":148,"path":149,"seo":150,"stem":151,"__hash__":152},"blog\u002Fblog\u002Fhow-to-calculate-late-payment-interest-uk.md","How to Calculate Late Payment Interest in the UK","Invoify Team",{"type":8,"value":9,"toc":133},"minimark",[10,15,24,28,38,42,45,50,53,75,79,82,126,130],[11,12,14],"h2",{"id":13},"understanding-uk-late-payment-interest","Understanding UK Late Payment Interest",[16,17,18,19,23],"p",{},"When a business pays an invoice late, UK law entitles you to charge statutory interest. This is defined by the ",[20,21,22],"strong",{},"Late Payment of Commercial Debts (Interest) Act 1998",".",[11,25,27],{"id":26},"the-current-rate","The Current Rate",[16,29,30,31,34,35,23],{},"The statutory interest rate is ",[20,32,33],{},"8% plus the Bank of England base rate",". As of early 2026, with the base rate at 4.5%, the total statutory rate is ",[20,36,37],{},"12.5% per annum",[11,39,41],{"id":40},"how-to-calculate","How to Calculate",[16,43,44],{},"The formula is straightforward:",[16,46,47],{},[20,48,49],{},"Daily interest = (Invoice amount × Annual rate) ÷ 365",[16,51,52],{},"For example, on a £1,000 invoice at 12.5%:",[54,55,56,63,69],"ul",{},[57,58,59,60],"li",{},"Daily interest = (£1,000 × 0.125) ÷ 365 = ",[20,61,62],{},"£0.34 per day",[57,64,65,66],{},"After 30 days: ",[20,67,68],{},"£10.27",[57,70,71,72],{},"After 90 days: ",[20,73,74],{},"£30.82",[11,76,78],{"id":77},"compensation-amounts","Compensation Amounts",[16,80,81],{},"In addition to interest, you can claim a fixed compensation amount:",[83,84,85,98],"table",{},[86,87,88],"thead",{},[89,90,91,95],"tr",{},[92,93,94],"th",{},"Invoice Amount",[92,96,97],{},"Compensation",[99,100,101,110,118],"tbody",{},[89,102,103,107],{},[104,105,106],"td",{},"Up to £999.99",[104,108,109],{},"£40",[89,111,112,115],{},[104,113,114],{},"£1,000 to £9,999.99",[104,116,117],{},"£70",[89,119,120,123],{},[104,121,122],{},"£10,000+",[104,124,125],{},"£100",[11,127,129],{"id":128},"using-invoifys-late-payment-calculator","Using Invoify's Late Payment Calculator",[16,131,132],{},"Invoify automatically calculates statutory interest on overdue invoices. Simply mark an invoice as overdue and the calculator shows exactly what you're owed — interest plus compensation.",{"title":134,"searchDepth":135,"depth":135,"links":136},"",2,[137,138,139,140,141],{"id":13,"depth":135,"text":14},{"id":26,"depth":135,"text":27},{"id":40,"depth":135,"text":41},{"id":77,"depth":135,"text":78},{"id":128,"depth":135,"text":129},"invoicing","2026-03-15","A complete guide to UK statutory interest rates for overdue invoices, including the Late Payment of Commercial Debts Act.","md",null,{},true,"\u002Fblog\u002Fhow-to-calculate-late-payment-interest-uk",{"title":5,"description":144},"blog\u002Fhow-to-calculate-late-payment-interest-uk","ye7PoOPI0x5VehPPjvlEWSE6clkxOhQ2Cy9nIKtEs1Q",1775748996724]