Late payment interest calculator (Late Payment of Commercial Debts Act 1998)
Short answer
8% a year over the Bank of England Bank Rate in force on the 30 June or 31 December immediately before interest starts to run (SI 2002/1675). For interest starting between 1 July and 31 December 2026 the rate is 11.75% (Bank Rate 3.75% + 8%). The rate stays fixed for the whole debt.General information as of 2026-10-10, not legal advice. Interest rates are checked every half-year.
Calculator
Simple interest under the Late Payment of Commercial Debts (Interest) Act 1998, at 8% over the Bank of England Bank Rate in force on the 30 June or 31 December before interest starts to run (SI 2002/1675), from the day after the due date; daily rate = annual / 365. Fixed sums under s.5A: £40 (debt under £1,000), £70 (£1,000 to under £10,000), £100 (£10,000 or more). Rates for England, Wales and Northern Ireland; Scotland has its own order. Applies where no substantial contractual remedy for late payment was agreed. Nothing leaves your browser; for information only.
Frequently asked questions
What is the statutory interest rate for late payment in the UK?
8% a year over the Bank of England Bank Rate in force on the 30 June or 31 December immediately before interest starts to run (SI 2002/1675). For interest starting between 1 July and 31 December 2026 the rate is 11.75% (Bank Rate 3.75% + 8%). The rate stays fixed for the whole debt.
How much compensation can I claim for late payment?
A fixed sum of £40 for a debt under £1,000, £70 for £1,000 up to £9,999.99, and £100 for £10,000 or more (s.5A), plus reasonable recovery costs above that sum.
Can a contract exclude statutory interest?
Only if the contract provides a substantial remedy for late payment (ss.8–9 of the Act); otherwise a term excluding or limiting statutory interest is void.
How is daily interest calculated?
Debt × statutory rate ÷ 365 per day of lateness, as simple interest (s.1 of the Act; GOV.UK guidance).
Check your contract's payment terms against the Late Payment Act checklist
Legal basis and rate sources: Late Payment of Commercial Debts (Interest) Act 1998; SI 2002/1675 (rate of interest); Bank of England Bank Rate history. For information only; not legal advice.