Invoicing
Late Payment Interest UK: How to Charge Clients 2026
10 min read
Thistle Team•Tax & Compliance Experts
Late Payment Rights
Under the Late Payment of Commercial Debts Act, you can charge:
- Interest: 8% + BoE base rate
- Fixed fee: £40 (invoices under £1,000), £70 (£1,000-£10,000), £100 (over £10,000)
Frequently Asked Questions
What is the late payment interest rate UK?
8% + Bank of England base rate (currently ~13% total).
Can I charge late payment fees?
Yes, plus a fixed compensation fee of £40-£100 depending on invoice value.
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