Self-Employed
Late Payment Interest UK: Your 8% + Base Rate Right
On overdue business-to-business invoices you can charge statutory interest of 8 percentage points above the Bank of England base rate, plus a fixed compensation sum per invoice (GBP 40, GBP 70 or GBP 100 by debt size). This is a legal right under the Late Payment of Commercial Debts (Interest) Act 1998, not a favour you ask for.
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Statutory interest (B2B invoices) - 8% plus the Bank of England base rate, per year, on the overdue...
2
Base rate on 25 June 2026 - 3.75% (held by the Bank of England on 18 June 2026), so statutory...
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Fixed sum: debt under GBP 1,000 - GBP 40 per invoice
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Fixed sum: debt GBP 1,000 to GBP 9,999.99 - GBP 70 per invoice
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Plus 6 more in the full guide
Freedom Isn’t Free Scan to read
freedomisntfree.co.uk/guides/late-payment-invoicing-uk