Templates › Late payment law by country / state
How UK businesses calculate statutory interest and fixed compensation under the Late Payment of Commercial Debts (Interest) Act 1998, with a reminder template.
For business-to-business contracts in the UK, the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim interest at 8 percentage points above the Bank of England base rate (use the base rate on 30 June or 31 December before the period), plus fixed compensation of £40 (debts under £1,000), £70 (£1,000 to £9,999.99) or £100 (£10,000+). Daily interest = amount × (8% + base rate) ÷ 365. It doesn't apply to consumers.
This is a general summary that may be out of date. Not legal advice. Verify current rules on official government or court websites.
Subject: Overdue invoice [INV-123]: [amount] due [due date] Dear [Name], Invoice [INV-123] for [amount] for [services] was due on [due date] and remains unpaid despite my reminders of [dates]. Please pay the outstanding balance [plus interest/compensation permitted by law or our agreement: state the basis] by [date]. If payment is not received by then, I intend to [next step for this jurisdiction] without further notice. If you dispute any part of the invoice, please tell me in writing by that date. Regards, [Your name]
Paste the amount, client, days overdue and region. Get the friendly, firm and final emails plus late-fee wording and calendar reminders in 20 seconds. 2 free, no signup.
Generate my sequence freeYes, if both parties are acting in the course of business.
No. For consumers you need a contractual term.
General information and draft wording only. Not legal advice. PaidNudge is not a law firm or a debt collector. Check your contract and local rules, or ask a qualified lawyer, before relying on any late fee, interest or court step.