Late Invoice Calculator
Welcome to our Late Invoice Calculator, designed to help you quickly determine the additional costs incurred when an invoice is paid late. This tool calculates the statutory interest you can charge on overdue payments as well as any debt recovery costs you may be entitled to under UK law.
Understanding Your Results
The calculator will display:
- The number of days the payment is overdue.
- The total interest accrued based on the statutory rate, which is 8% plus the Bank of England's current base rate.
- The fixed sum for debt recovery costs, which varies depending on the overdue amount.
Why Late Payment Charges?
Charging interest on late payments serves as a deterrent against delays and compensates creditors for the inconvenience and potential financial impact of delayed payments. It's not just about recouping losses; it's also about maintaining a healthy cash flow which is essential for business operations.
Legal Framework
Under UK law, you're entitled to charge interest on late payments to help cover the costs of debt recovery. This tool uses the standard formula recommended by the UK government, ensuring that your calculations are compliant with current regulations.
Use our calculator to ensure that you are fully compensated for late payments in a manner that is both fair and legally sound. If you have any questions about how to use this tool or how the calculations are performed, please contact us through the provided contact details.
