UK late-payment compensation: £40, £70 and £100

Current GOV.UK guidance sets the fixed recovery sum at £40 for debts up to £999.99, £70 for debts from £1,000 to £9,999.99, and £100 for debts of £10,000 or more.

The fixed amount is separate from statutory interest, which is why LatePay Kit shows the two figures independently before combining them into a potential additional amount.

The fixed sum is intended to compensate for the cost of recovering a late commercial payment. It is not calculated as a percentage of the invoice value.

Official guidance also explains that reasonable recovery costs may be claimable in some circumstances where the fixed sum does not cover the recovery cost.

The fixed recovery sum is determined by the debt band. Statutory interest, by contrast, depends on the unpaid amount, applicable annual rate and number of days overdue.

Read how UK late-payment interest is calculated on an overdue invoice.

The same eligibility cautions that apply to statutory interest matter here too. Check that the debt falls within the commercial late-payment rules and review any contractual terms before relying on the fixed compensation figure.

For the wider legal framework, see our plain-English guide to the Late Payment of Commercial Debts Act.

GOV.UK — Claim debt recovery costs on late payments ↗

Enter the invoice amount and due date into the free calculator to see the potential fixed compensation alongside estimated statutory interest.