Work out how much statutory interest and fixed compensation you can claim on overdue invoices under the Late Payment of Commercial Debts (Interest) Act 1998.
The Late Payment of Commercial Debts (Interest) Act 1998 gives businesses and sole traders the statutory right to charge interest and claim fixed compensation when another business pays an invoice late. This applies to business-to-business (B2B) transactions, which covers most work carried out by tradespeople for landlords, property managers, contractors, and commercial clients.
The statutory interest rate is 8% per year above the Bank of England base rate. The rate is calculated on a daily basis from the day after the agreed payment deadline until the debt is settled.
On top of interest, you can claim a fixed sum as compensation for the cost of recovering the debt:
| Debt amount | Compensation |
|---|---|
| Up to £999.99 | £40 |
| £1,000 – £9,999.99 | £70 |
| £10,000 or more | £100 |
WOPA chases late payments automatically. Set reminders at 7, 14, and 28 days — and let WOPA handle the follow-up emails while you're on the job.
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