Free tool · BuildMeA Projects
They owe you more than the invoice
Charge them what the law allows. Calculate the statutory interest and fixed compensation on a late B2B invoice, then generate a ready-to-send chase letter — friendly nudge, firm chase or letter before action.
1. Calculate what's owed
Who this is for
Builders, subcontractors, tradespeople and any UK business chasing a late invoice from another business. This applies to business-to-business (B2B) debts only — the Late Payment of Commercial Debts (Interest) Act 1998 does not apply when your customer is a private consumer. Everything you type stays in your browser: nothing is uploaded, saved or sent anywhere.
Frequently asked questions
Can I really charge this on top of the invoice?
Yes. The Late Payment of Commercial Debts (Interest) Act 1998 gives every UK business the automatic legal right to charge statutory interest (the Bank of England base rate plus 8%) and fixed compensation on a late B2B invoice — you don't need it written into your contract, and you don't need the customer's agreement. Most trades simply never bother to claim it.
What if we never agreed payment terms?
If nothing was agreed in writing or verbally, the law implies a default payment term of 30 days after the later of the invoice date or the date the goods/services were delivered. After that, the debt is officially late and statutory interest starts running.
Won't this damage the relationship with my customer?
It's worth reframing this: it's a statutory right Parliament gave small businesses specifically because late payment is such a common problem in trades and construction. Most businesses that pay on time never see a penny of it — it only becomes relevant once a customer is already treating your invoice as free credit. A firm, factual letter that quotes the actual legislation tends to get taken more seriously than a chasing phone call, precisely because it shows you know your rights.
How is the fixed compensation worked out?
The Act sets fixed compensation by invoice size: £40 for debts under £1,000, £70 for debts of £1,000 up to £10,000, and £100 for debts of £10,000 or more. It's a one-off charge per overdue invoice, on top of the daily statutory interest, to cover the cost of recovering the debt.
Please note: this tool gives a guide or estimate only. It may not be 100% accurate and is not professional advice — always check the figures before you rely on them. Rates, thresholds, allowances and rules can change without notice and may be out of date by the time you use this tool. Verify against HMRC / GOV.UK or your accountant before acting. This applies to business-to-business (B2B) debts only — it does not apply where your customer is a private consumer. This is general guidance, not legal advice; for a genuinely disputed or high-value debt, speak to a solicitor or use the Money Claim Online service.
Almost there
Where should we send your chase letter?
The figures and letters are free to read on screen. Pop your details in and you can print or copy this letter right away — we build websites & lead systems for UK trades, this is how we say hello.
Success
You're all set!
Check your inbox — and your spam or junk folder, just in case.
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