Free tool · UK statutory interest
How much is that late invoice actually costing them?
By law, UK businesses can charge interest and compensation on overdue commercial invoices. Enter yours and see the real figure — the one your client owes for every day they sit on your money.
Your invoice
Statutory rate is 8% + the Bank of England base rate (3.75%), so 11.75% a year, plus a one-off fixed sum. Interest runs from the day after payment was due.
Total now owed
no interest yet — the clock starts the day after it's due
A guide, not legal or financial advice. Applies to commercial (B2B) invoices under the Late Payment of Commercial Debts (Interest) Act 1998. Base rate 3.75%, checked August 2026; the Bank of England reviews it through the year.
The law that’s already on your side
If you invoice another business and they pay late, you don’t have to eat the cost. The Late Payment of Commercial Debts (Interest) Act 1998 entitles you to interest and a fixed sum on every overdue invoice — automatically, whether or not it’s written into your contract.
Interest accrues daily at 8% above the Bank of England base rate (11.75% a year right now) from the day after payment was due until the day it’s paid. On top, you can claim a one-off fixed compensation for the trouble of chasing, scaled to the size of the debt.
Most freelancers never claim a penny of it — not because they can’t, but because raising it feels awkward and tracking it is a chore. That’s the part worth fixing.
Stop calculating. Start collecting.
Badger claims this for you — while you sleep.
The calculation is the easy part. Badger sends the reminders automatically, adds the statutory interest to the invoice, and watches for the payment to land — so you never have to write “just following up” again.
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