Late-payment interest in United Kingdom
Statutory late-payment interest in United Kingdom is 11.75% a year, based on the reference rate of June 30, 2026.
The rule
Basis: Late Payment of Commercial Debts (Interest) Act 1998 s.5A; Late Payment of Commercial Debts (Rate of Interest) (No. 3) Order 2002. Source: legislation.gov.uk (opens in a new tab)
One rate applies to the whole delay, taken from the reference rate on the last day of the half-year before the delay starts.
| Part | Value |
|---|---|
| Bank of England Bank Rate | 3.75% |
| Margin set by law | 8.00% |
| Statutory rate per year | 11.75% |
Fixed compensation
| Invoice amount | Compensation |
|---|---|
| Below £1,000.00 | £40.00 |
| Below £10,000.00 | £70.00 |
| Above that | £100.00 |
Calculate late-payment interest in United Kingdom
General information, not legal advice. Contracts can set a different rate within what the law allows.