Statutory late payment interest rate and compensation
The interest you can charge on overdue business invoices under the Late Payment Act, the current reference rate, and the fixed compensation amounts.
- 2026/27 tax year, reviewed 2nd September 2026
- Figures from HMRC and the Treasury
- Updated automatically when rates change
- 11.75%Statutory rate now
- 3.75%Bank of England reference rate
- £40 / £70 / £100Fixed compensation
What changed from 2025/26 to 2026/27
| Item | 2025/26 | 2026/27 | Change |
|---|---|---|---|
| Reference (base) rate | 4.25% | 3.75% | −0.5 points |
| Statutory rate (8% + reference) | 12.25% | 11.75% | −0.5 points |
Full rates and thresholds
Everything for 2026/27 in one place.
Fixed compensation per invoice
| Debt | Compensation | |
|---|---|---|
| Under £1,000 | £40 | |
| £1,000 to £9,999.99 | £70 | |
| £10,000 and over | £100 |
Worth knowing
- The reference rate is the Bank of England base rate on 30 June (for debts due 1 July to 31 December) or 31 December (for 1 January to 30 June).
- Interest is simple, runs from the day after the due date, and is outside the scope of VAT.
- The statutory right applies between businesses; it does not apply to consumers.
Run your own figures: Late Payment Interest Calculator
Late Payment Interest Calculator
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Frequently asked questions
What is the current statutory interest rate on late payments?
11.75% a year: 8% above the Bank of England base rate of 3.75% fixed for the current six-month period.