B2B Late Payment Interest Calculator
✓ Verified for 2026/27Invoice Details
£
%
Late Payment Interest
£41
at 13.25% statutory rate
Compensation Fee
£70
for £1,000 to £9,999.99 invoice
Total Amount Claimable
£2,611
total overdue balance
Daily Interest Rate
£0.91
accrues every day
Debt Collection Summary
Original Invoice Principal
£2,500
Accrued Interest
£41
Statutory Compensation
£70
Total Debt Value
£2,611
Invoice
96%
Interest
1.5%
Comp
2.5%
UK businesses have a statutory right to charge interest on late B2B payments at 8% plus the Bank of England base rate. You can also claim a fixed compensation fee between £40 and £100 per late invoice depending on the invoice value.
🛡️
Verified for Late Payment Rules (2026/27)
Fact-checked and audited against official HMRC legislation and statutory tables by the Tax Calculators for UK Editorial Desk.
Fact-checked and audited against official HMRC legislation and statutory tables by the Tax Calculators for UK Editorial Desk.
Statutory Compensation Fee Limits
Under the late payment legislation, the amount of compensation you can claim depends on the size of the overdue invoice principal:
- Up to £999.99: Claim a fixed compensation fee of £40 per invoice.
- £1,000 to £9,999.99: Claim a fixed compensation fee of £70 per invoice.
- £10,000 or more: Claim a fixed compensation fee of £100 per invoice.
Late Payment Calculation Formula
The statutory interest accrues daily and is calculated using the following commercial finance formula:
Interest Due = (Principal * (BoE Base + 8%) * Days Overdue) / 365
Interest is calculated as simple interest. The base rate used is the Bank of England base rate on 31 December (for the next 6 months starting 1 January) or 30 June (for the next 6 months starting 1 July).
Verified for Accuracy (2026/27 Tax Year)
Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.How We Calculated This
- Input variables: Enter the relevant amounts, rates, or percentages in the form.
- Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
- Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.
Real-World Examples
Standard Scenario
A basic calculation applying standard UK tax bands and allowances.
Calculation runs based on standard HMRC rules.
With Pension or Deductions
Factoring in a percentage of salary sacrifice or pension contributions.
Deductions are calculated and adjusted accordingly.