Who may be eligible?
The statutory regime covers qualifying debts for goods or services supplied business-to-business or to a public authority. It does not apply to consumer debts. Contract terms, disputes and the applicable jurisdiction can change the position, so the calculator is a starting point rather than a legal decision.
How interest is calculated
Statutory annual rate = relevant Bank of England reference rate + 8 percentage points.
Daily interest = unpaid amount × annual rate ÷ 365.
Confirm the reference rate that applies when the debt became late. ChaseKit keeps this field editable and records when its default was last checked.
The fixed recovery sum
- Less than £1,000: £40
- £1,000 to £9,999.99: £70
- £10,000 or more: £100
The fixed sum is separate from the interest. GOV.UK also explains when reasonable recovery costs above that fixed amount may be claimed.
Worked example
For a £1,250 eligible invoice that is 30 days overdue, using an annual rate of 11.75%, daily interest is approximately £0.40. Thirty days produces approximately £12.07 interest, and the invoice falls in the £70 compensation band. The resulting total is approximately £1,332.07.
Do you have to charge it?
No. You may choose to mention the possible amount in a reminder, reserve your rights, or add the sum to the amount requested. Whatever you decide, state the figures accurately and keep the calculation with your invoice record.
What if the contract has its own rate?
A contractual remedy can apply instead of statutory interest if it provides a substantial remedy for late payment. Review the written terms before relying on the statutory result.