Legal disclaimer

LatePay UK is software, not a law firm or solicitor, and nothing it produces is legal advice. Calculations and letter templates are provided for information and convenience; check them and seek professional advice before taking legal action.

Statutory interest and fixed compensation under the Late Payment of Commercial Debts (Interest) Act 1998 apply only to business-to-business transactions, and not where your contract sets a different "substantial remedy" for late payment. Interest is 8% plus the Bank of England reference rate (the base rate on 31 December for debts arising January–June, or 30 June for July–December). Fixed sums: £40 (debts under £1,000), £70 (£1,000–£9,999.99), £100 (£10,000+), claimable once per invoice.

Sources: gov.uk – interest on late commercial payments; gov.uk – debt recovery costs; Bank of England Bank Rate history.

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