If a client has not paid on time, UK law gives you the right to claim more than just the invoice amount. The Late Payment of Commercial Debts (Interest) Act 1998 entitles you to statutory interest, fixed compensation, and in some cases reasonable recovery costs on top.
This calculator shows you exactly what you can claim. Enter your invoice amount, the date payment was due, and today's date. That is all it needs.
Late Payment Calculator
Calculate statutory interest and compensation under the Late Payment of Commercial Debts Act 1998
You may also be entitled to claim reasonable costs of recovering the debt where these exceed the fixed compensation amount. This varies by situation and is not included in the figure above. Speak to a commercial solicitor if you intend to pursue this element.
For B2B invoices only. Interest is calculated as: invoice amount × statutory rate × (days ÷ 365). Statutory interest cannot be claimed if a different rate is already specified in your contract. This calculator is provided for guidance only and does not constitute legal advice.
Want the ready-to-use invoice payment terms wording to go with this?
Get the template →Knowing what you can claim is one thing. Getting paid is another.
If you are regularly dealing with late invoices, the issue is usually process rather than legislation. A consistent, professional approach to chasing, starting before the due date rather than after it, resolves most situations without any need to invoke your statutory rights at all.
The INcharge Invoice Payment Terms Template gives you the ready to use wording to add to every invoice, so your rights are clearly stated from the start.
The Credit Control Foundations Kit goes further, giving you the full process: chasing templates, scripts, and workflow guidance, so nothing gets missed.
If you would rather hand the whole thing over, that is what INcharge is here for. Find out more about the Core Service or book a call to talk through your situation.