Late Payment Toolkit
Recover what you are owed. Under the Late Payment of Commercial Debts (Interest) Act 1998, businesses in England and Wales can claim statutory interest at 8% above the Bank of England base rate, plus fixed-sum compensation, on overdue commercial invoices.
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Your rights under the Late Payment Act
The Late Payment of Commercial Debts (Interest) Act 1998 gives businesses in England and Wales a statutory right to claim interest on late commercial payments. You do not need a contract clause to use it.
Statutory interest is calculated at 8% above the Bank of England base rate, applied as simple interest on a daily basis from the date payment was due.
Fixed-sum compensation is also available: £40 for debts under £1,000; £70 for debts between £1,000 and £9,999.99; and £100 for debts of £10,000 or more.
This information is for general guidance only and does not constitute legal advice. If you are uncertain about your rights, seek independent legal advice.