Updated every reference period
The UK statutory interest rate for late payment
Current rate · 1 July – 31 December 2026
11.75%
= 8% statutory margin + 3.75% Bank of England base rate (as at 30 June 2026)
How the rate is set
Under the Late Payment of Commercial Debts (Interest) Act 1998, businesses can charge interest on overdue commercial invoices at 8% above the Bank of England base rate. The base rate used isn't whatever it happens to be today: the law fixes a reference rate twice a year — the base rate as it stands on 30 June applies for July–December, and the rate on 31 December applies for January–June.
On top of interest, each qualifying invoice earns fixed compensation: £40 (invoices under £1,000), £70 (£1,000–£9,999.99) or £100 (£10,000+). Together these often offset most of the cost of professional recovery — see what debt collection actually costs, or the full guide to charging late-payment interest.
Historical statutory rates
| Period | Base rate | Statutory rate |
|---|---|---|
| 1 July – 31 December 2026Current | 3.75% | 11.75% |
| 1 January – 30 June 2026 | 3.75% | 11.75% |
| 1 July – 31 December 2025 | 4.25% | 12.25% |
| 1 January – 30 June 2025 | 4.75% | 12.75% |
| 1 July – 31 December 2024 | 5.25% | 13.25% |
| 1 January – 30 June 2024 | 5.25% | 13.25% |
| 1 July – 31 December 2023 | 5% | 13% |
| 1 January – 30 June 2023 | 3.5% | 11.5% |
| 1 July – 31 December 2022 | 1.25% | 9.25% |
| 1 January – 30 June 2022 | 0.25% | 8.25% |
Reference rates per the Bank of England base rate on each 30 June / 31 December. Verify at bankofengland.co.uk.
Rate questions, answered
When does the statutory interest rate change next?
The rate is fixed for six months at a time. The next reference date is the end of the current period — the Bank of England base rate on that day (31 December or 30 June) sets the statutory rate for the following half-year. The current rate of 11.75% applies to debts falling due between 1 July – 31 December 2026.
Which rate applies to my invoice?
The rate from the reference period in which the debt became overdue — and technically a long-running debt spans successive periods. In practice, most creditors calculate at the rate in force when payment fell due; our calculator uses the current rate and lets you adjust it.
Does statutory interest apply to consumer debts?
No — the Late Payment of Commercial Debts (Interest) Act covers business-to-business transactions (including sole traders acting in the course of business). For other debts, courts can award interest — typically 8% simple — when giving judgment.
Can I use this page as a reference?
Please do — cite or link to this page freely. We update it at every reference date, so a link here stays correct when a copied number wouldn't.
Owed an invoice that's earning this interest?
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