What is the fixed compensation for late payment?

A one-off sum per late invoice: £40 for invoices under £1,000, £70 for invoices between £1,000 and £9,999.99, and £100 for invoices of £10,000 or more.

Does statutory late payment interest apply to private clients?

No. The Act covers business-to-business debts only. For private clients, late payment terms must be set out in the contract.

late-payment-interest-calculator

KNOW YOUR RIGHTS

Late invoice? Charge for it.

The Late Payment of Commercial Debts (Interest) Act 1998 gives every UK business - including sole traders and self-employed entertainers - the right to charge interest when another business pays late. You don’t need it written into your contract. You don’t need to warn them in advance. The right exists automatically on every business-to-business invoice.
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Three things you’re entitled to:
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1) Statutory interest.
‍8% plus the Bank of England base rate, building daily from the day after the invoice falls due.
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2) Fixed compensation.
‍A one-off sum per invoice:
£40 under £1,000,
£70 up to £10,000,
£100 above that.
Even if they pay one day late.
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3) Reasonable recovery costs.
‍If chasing the debt costs you more than the fixed sum, you can claim the difference.
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Use this calculator

Do you have payment terms in your contract?

Without agreed terms, the law gives clients 30 days to pay from the invoice date.

Contracted payment terms (days from invoice date)

When did the client receive the invoice?

If it's been paid, when?

Leave blank if it's still unpaid - interest keeps building daily.

Invoice value (including any VAT)

Total you can charge on top

£0.00

Days overdue

£0.00

Statutory interest

£0.00

Fixed compensation

FAQ

Questions, answered.

Q: Can I charge interest on a late invoice in the UK?
Yes. If both you and your client are businesses, the Late Payment of Commercial Debts (Interest) Act 1998 gives you an automatic right to charge statutory interest and fixed compensation on late payment. It doesn’t need to be in your contract.
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Q: How much interest can I charge?
8% per year plus the Bank of England base rate, calculated daily as simple interest. The base rate used is the one in force on 31 December or 30 June before your invoice became overdue.
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Q: What is the fixed compensation?
A one-off sum you can add to each late invoice: £40 for invoices under £1,000, £70 for invoices from £1,000 to £9,999.99, and £100 for £10,000 or more. It applies even if payment is only a day late.

Q: When does an invoice become overdue?
On the day after your agreed payment terms expire. If you haven’t agreed terms, the law sets a default of 30 days from the date the client received the invoice.
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Q: Does this apply to weddings and private parties?
No - the Act only covers business-to-business debts. For private clients, late payment terms need to be written into your contract. (Giggio’s contracts handle this for you.)
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Q: Do I have to charge it?
No, and many entertainers use it as leverage instead: mention the interest that’s building, offer to waive it for prompt payment. It gets invoices paid without souring the relationship.

Late Payment
Interest Calculator

Late invoice? Charge for it.

Use this calculator

Questions, answered.

Get back to performing.

Late PaymentInterest Calculator

Late invoice? Charge for it.

Use this calculator

Questions, answered.

Get back to performing.

Late Payment
Interest Calculator