Invoice Amount	Statutory compensation per invoice
Up to £999.99p	£40
£1000.00 - £9,999.99p	£70
£10,000 or more	£100

Late payment statutory interest calculator

This calculator is written in JavaScript. If for any reason you have JavaScript turned off, your browser cannot support JavaScript or you are experiencing difficulties in making the calculator work, please look at the following instructions below with regard to manually calculating your interest calculations.

How do I calculate the interest charge?
The interest owed on a late payment is simple, not compound, interest. It is calculated like this: Debt times the interest rate times the number of days late divided by 365
Do I calculate inclusive or exclusive of VAT? You charge interest on the gross amount of the debt (including any element of VAT), but you do not pay VAT on the interest.
An example is provided below.
If the base rate is 4% for the six-month period when the debt became late, then the statutory interest rate is 12% (4% base rate plus 8%) Debt is GBP 851.06
plus GBP 148.94 VAT = total GBP 1,000
If this debt is 30 days late, then the interest owed is:
GBP 1,000 x 12% = GBP 120 (the annual rate)
GBP 120 � 365 = 32.9p (the daily rate)
32.9 pence x 30 days = GBP 9.86 (the interest owed to date)

For information on the Bank of England base rates, please use the following link: http://www.bankofengland.co.uk/Links/setframe.html and click on �Current MPC Interest Rate�. Then click on 'Interest Rate Decisions' which provides access on the right-hand side to all interest rate decisions made since 1997.

CALCULATOR
Date the work was done approx	(dd/mm/yyyy)
Date payment became overdue	(dd/mm/yyyy)
Date of Payment (if principal debt has now been paid):	(dd/mm/yyyy)
Are you a public sector body?	(tick for yes)
Number of approx employees (Creditor)	(numbers only)
Number of approx employees (Debtor)	(numbers only)
Total invoice value (inc VAT)	(numbers only)

CALCULATION RESULTS

Statutory Compensation & Interest

For Business to Business debts you can claim compensation for late invoices. The compensation is calculated by us for you and is worked out as below. You can also claim statutory interest at 8% above base rate from the date payment became overdue to the date we write to the debtor.