Statutory Commercial Debt Math

Late Payment / Invoice Interest Calculator

Calculate the exact statutory late payment interest, daily accrual fees, and debt recovery compensation legally owed on overdue commercial invoices under UK, US, EU, and Indian legislation.

Invoice Parameters

Legal Jurisdiction & Governing Statute

Statute: Late Payment of Commercial Debts (Interest) Act 1998 & 2013 Regulations

Principal Invoice Amount (GBP)

Invoice Due Date

Calculation / Payment Date

Annual Interest Rate (%)12.75% p.a.

Standard: 8% statutory base + central bank benchmark rate.

Include Statutory Debt Recovery Compensation Fee (£40)Commercial creditors are entitled by law to fixed compensation (£40-£100 or $50) to cover administration and recovery overheads.

Total Legally Due Now

£2,600.57

Days Overdue:35 days

Original Principal:£2,500.00

Daily Accrual (12.75% p.a.):£0.87/day

Accrued Interest (35 days):+£30.57

Statutory Recovery Fee:+£70.00

Generate Demand Invoice

Ready-to-Send Overdue Demand Notice

Subject: STATUTORY OVERDUE NOTICE: Invoice #1042 - Payment Overdue (35 Days)

Dear Accounts Team,

We are writing regarding Invoice #1042 originally due on 2026-09-19 for the amount of £2,500.00.

As payment has not been received, this invoice is now 35 days overdue.

Under statutory commercial payment legislation (Late Payment of Commercial Debts (Interest) Act 1998 & 2013 Regulations), late payment interest and statutory recovery compensation fees have been applied:

• Principal Invoice Amount: £2,500.00
• Statutory Late Payment Interest (12.75% p.a. for 35 days): £30.565
• Statutory Debt Recovery Compensation Fee: £70.00
• TOTAL BALANCE LEGALLY DUE: £2,600.565

Please remit the revised total balance of £2,600.565 immediately via bank transfer to avoid further daily compounding interest and formal credit escalation.

Thank you for your prompt attention to this matter.

Sincerely,
Credit Control & Receivables Management

How to Calculate Statutory Late Payment Interest Legally

When a commercial client delays payment past your payment terms (usually 30 days from invoice date), they are holding your business’s working capital hostage. Under statutory late payment commercial debt legislation in the UK, United States, EU, and India, self-employed contractors and small businesses have a legal right to claim interest and compensation without requiring prior court approval.

The Statutory Interest Formula

Daily Interest = (Principal Debt × Statutory Annual Interest Rate) ÷ 365
Total Interest = Daily Interest × Days Overdue

Frequently Asked Questions

Can I charge late payment interest to consumers or only businesses?

Statutory commercial debt interest acts strictly for B2B transactions (business-to-business). For residential homeowners or retail consumers, late fees must be explicitly stated in your original signed quote, contract terms, or estimate.

How do I add bank transfer details so clients pay immediately?

You can generate a formal demand invoice on DoXMitra with your bank name, beneficiary name, account number/IBAN, and routing/IFSC/SWIFT code embedded right on the PDF.