RLP Advisory — Live Calculator

Late Payment Cost Calculator

What overdue invoices are actually costing you — and what UK law says you can claim back.

Rob Pegg BA Hons FCILT  |  RLP Advisory Services Ltd
25+ Yrs Ops Leadership · FCILT Chartered Fellow
Almost half of UK SME invoices are currently overdue, and most businesses don't realise UK law gives them a statutory right to claim interest and compensation on every one of them — automatically, even without a clause in the contract. Enter your numbers below to see what's actually owed.
49%
of UK SME invoices are currently overdue, with an average wait of 27 days past terms
Sage SME Performance Pulse, Q1 2026, ~150,000 firms
£22,000
average amount owed to a UK small business in overdue invoices at any one time
Federation of Small Businesses

The overdue invoice

£5,000
30 days
Statutory interest owed
£0
Fixed compensation
£0
Total you can claim
£0
If this invoice is typical of your overdue book
£0
Statutory interest at 11.75% (8% + Bank of England base rate of 3.75%, effective from 18 December 2025) under the Late Payment of Commercial Debts (Interest) Act 1998.
ComponentAmount
Invoice value£0
Statutory interest (11.75% p.a., simple, pro-rated by days late)£0
Fixed compensation for debt recovery costs£0
Total you're entitled to claim£0
How this works: under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses have an automatic right to charge statutory interest of 8% above the Bank of England base rate on overdue B2B invoices, even if your contract doesn't mention it. You can also claim fixed compensation per invoice: £40 for debts under £1,000, £70 for debts of £1,000–£9,999.99, and £100 for debts of £10,000 or more. If your actual recovery costs (e.g. debt collection or legal fees) exceed the fixed compensation, you can claim the extra reasonable costs on top. This right exists automatically as an implied term in qualifying B2B contracts — you don't need to have warned the customer in advance to claim it.
This is general information based on the Act as it currently stands, not legal advice for your specific situation. Whether and how to pursue a claim — especially against an ongoing customer relationship — is a commercial judgement as much as a legal one. Speak to a solicitor before formally invoking these rights against a live account.
Late payment a recurring problem in your business?
robert@rlpadvisory.co.uk  |  www.rlpadvisory.co.uk
Book a 20 minute call: robert@rlpadvisory.co.uk