Small Business Commissioner
Fair Payment Code

Interest Calculator

You can charge interest and compensation on any invoices which have been paid late or have not been paid within your agreed payment terms. 

The interest you can charge if another business is late paying for goods or a service is ‘statutory interest’ – this is 8% plus the Bank of England base rate for business-to-business transactions. You cannot claim statutory interest if there’s a different rate of interest in a contract. 

Do you have contracted payment terms?
What are your contracted payment days from date of invoice as per the contract?
What was the date invoice received by respondent?
If the overdue invoice has been paid, what was the date of payment?
What was the date invoice received by respondent?
If the overdue invoice has been paid, what was the date of payment?

Using the Interest Rate Calculator

Our interest rate calculator calculates interest to the first two decimal points only. While this gives a fairly accurate figure it should be used as a guide to the amount of interest and compensation you can charge on overdue invoices.

Guidance on how to use our interest calculator

Have an invoice which has not been paid?

If you have an invoice which has not been paid, you can contact us at the Office of the Small Business Commissioner (OSBC), as we may be able to assist you with recovering late payments.  

Raise an enquiry regarding late payments