£LatePay · Caishen Labs
c.20 — Late Payment of Commercial Debts (Interest) Act 1998
UK statutory interest · commercial invoices

Every overdue invoice is quietly earning you interest.

The law lets UK businesses add 8% + Bank of England base-rate interest — plus fixed compensation — to any invoice paid late. Most never claim a penny of it.

Calculate free — no sign-up Takes about 10 seconds

How it works: statutory interest accrues daily from the day payment was due until the day it clears. It applies automatically — even when it isn't written into your contract.

Statement of account LPCDA 1998
£
Credit owed to you
£0.00
Days overdue
Statutory interest8% + base rate, daily£0.00
Fixed compensationset by the Act£0.00
Total owed£0.00

Want a ready-to-send demand letter with these figures filled in?

One email with the demand-letter template. Nothing else — no spam.

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What the Act actually entitles you to

Four rights most UK businesses never exercise on the invoices they're paid late.

8%

Statutory interest, above base rate

8% plus the Bank of England base rate, accruing every day from the due date until the invoice is settled.

£40–100

Fixed compensation, per invoice

£40 under £1,000, £70 up to £10,000, £100 above — a flat sum you can claim on top of the interest.

Auto

It applies without a clause

You don't need late-payment terms in your contract. The entitlement is set by statute and applies by default.

6 yrs

You can usually look back years

In England & Wales the limitation period for a simple contract debt is generally six years — so old invoices may still count.

Three steps to getting it paid

From a number on the screen to money back in the account.

STEP 01

Calculate the figure

Enter the invoice, the due date, and when (or if) it was paid. See interest and compensation itemised.

STEP 02

Send the demand

We email you a demand letter with your figures already filled in — ready to forward to the client.

STEP 03

Collect the total

Claim the invoice plus the interest and compensation the Act says is yours.

See what one late invoice already owes you.

It's free to calculate and there's no account to create. If the number's worth chasing, we'll hand you the letter to chase it with.

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