See what an overdue B2B invoice is really worth — the statutory interest you can add, the fixed compensation, and the total you can put in a reminder or Letter Before Action.
On a late UK B2B invoice you can claim statutory interest at the Bank of England base rate plus 8% — 11.75% a year with the base rate at 3.75% (as of 18 June 2026) — plus a fixed sum of £40, £70 or £100 depending on the debt size.
Interest accrues at the Bank of England base rate plus 8% (Late Payment of Commercial Debts (Interest) Act 1998), about £1.61 a day on this debt. Interest and compensation are recoverable from the debtor where the court agrees — RobinReturn takes no cut of either. Figures are illustrative and not legal advice.
The Late Payment of Commercial Debts (Interest) Act 1998 lets a business add interest and a fixed sum to an overdue commercial invoice. It applies to B2B debts in England & Wales.
Statutory interest runs at the Bank of England base rate plus 8 percentage points, as simple interest on the unpaid amount from the day payment became late until it is paid. The base rate that applies is the one in force on the relevant reference date (30 June for debts due July–December; 31 December for debts due January–June), so adjust the rate above for your debt if needed.
Fixed compensation under s.5A is a one-off sum per invoice: £40 below £1,000, £70 from £1,000, and £100 from £10,000. It is in addition to the interest.
Both are recoverable from the debtor; if a claim reaches the County Court, whether interest and costs are awarded is at the court's discretion. RobinReturn is not a law firm and does not give legal advice — these figures are illustrative.
See how a Letter Before Action works or view the full price book.
For a B2B debt you can claim statutory interest at the Bank of England base rate plus 8 percentage points under the Late Payment of Commercial Debts (Interest) Act 1998. With the base rate at 3.75% that is 11.75% a year, calculated as simple (non-compounding) interest on the unpaid amount.
On top of interest you can claim a fixed sum under s.5A: £40 for debts under £1,000, £70 for debts of £1,000 up to £10,000, and £100 for debts of £10,000 or more. One fixed sum applies per unpaid invoice.
Yes. Statutory interest and the s.5A fixed sum are separate and can be claimed together on the same overdue commercial debt.
No. The interest and compensation are yours — RobinReturn charges only its per-action fees (a reminder is £2.00, a Letter Before Action is £9.50) and takes no percentage of what you recover.
No. You can state the interest and compensation in a reminder or a Letter Before Action and many debtors pay before court. If it does reach the County Court, whether interest and costs are awarded is at the court's discretion.
Start with a £2.00 reminder that states the debt, interest and compensation — and escalate only if you need to.