Guides

Getting paid when a business pays late

Plain-English guides to the Late Payment of Commercial Debts (Interest) Act 1998: what you can charge, how to chase, and what to do before court. Every figure comes from the same Bank of England rate table the calculator uses.

• Statutory interest rate for late paymentUK statutory interest on late business invoices is 11.75% for interest starting 1 July 2026 to 31 December 2026. Rates since 2022.
• Late payment compensation: the £40, £70 and £100 fixed sumsWhen a business pays a UK invoice late you can claim a fixed sum of £40, £70 or £100 on top of statutory interest. How the bands work and when you can claim.
• Late payment letter templates for an unpaid invoiceFree UK late payment letter template for an unpaid business invoice, plus how to escalate to a formal demand and a final notice that claim statutory interest.
• Letter before action for an unpaid invoiceWhat to send before taking a business client to court over an unpaid invoice in the UK: companies, sole traders, the Pre-Action Protocol and how long to give.