Late payment compensation: £40, £70 or £100
The fixed sum you can add to each late B2B invoice, worked out across your whole list — including invoices already paid late.
As well as interest, gov.uk sets a fixed sum per late invoice: £40 for debts under £1,000, £70 for £1,000 to £9,999.99 and £100 for £10,000 or more. It's per invoice, so a customer who paid six small invoices late owes £240. You can also claim reasonable extra recovery costs; Latetally only adds the fixed sum.
The sample is fictional: 9 invoices from a design studio to 4 business customers, calculated to 2026-11-04. 7 are overdue or were paid late. For example, invoice INV-1041 for £850.00 was due on 2026-05-02; interest runs 186 days at 11.75% (8% + 3.75% Bank Rate on 2025-12-31), which is £50.90, plus £40.00 fixed compensation.
Across the sample: interest £714.33, compensation £460.00, so £1,174.33 on top of the unpaid £22,615.50 — £23,789.83 to claim in total.
Your invoices stay on your computer
Latetally reads your file with JavaScript in this browser tab. Customers and amounts are never uploaded and nothing is saved — close the tab and it's gone. No account needed.
How it works
- Export your overdue invoices — amount and due date — or use the template or the sample.
- Pick the date to calculate interest up to.
- Send the claim: interest, compensation and the total for each customer.
FAQ
Is my data uploaded?
No. Your files are read by JavaScript in your browser tab and never sent to us or anyone else. Invoices aren't stored, so closing the tab clears them. Your payment terms and compensation choice can be saved in this browser if you ask; your business name never is.
What rate does Latetally use?
8% plus the Bank of England reference rate. The reference rate is Bank Rate on 31 December (for interest starting January to June) or 30 June (July to December), and it stays fixed for that invoice. For example, an invoice due in August 2026 uses 3.75% from 30 June 2026, so 11.75% a year.
How is the interest worked out?
Simple interest, not compound: amount × annual rate × days late ÷ 365, from the day after the due date to the day it was paid (or the date you choose), rounded to the penny for each invoice.
How much compensation can I claim?
A fixed sum once per invoice: £40 if it's under £1,000, £70 if it's £1,000 to £9,999.99, and £100 if it's £10,000 or more. You can also claim reasonable extra recovery costs on top, which Latetally doesn't calculate.
When can't I claim statutory interest?
When your contract sets its own late payment interest rate, when the customer is a consumer rather than a business, or when the debt is too old (generally six years). Latetally flags old debts but can't read your contract.
What if there's no due date?
Where none was agreed, the default under the Act is 30 days after the later of the customer receiving the invoice or the goods or services. Latetally uses the invoice date plus your default terms (30 days unless you change it), and flags those invoices.
What's free?
Total interest, compensation and the claim per customer for any number of invoices, every flag, 3 what-ifs and 5 invoices on screen and in print (with a footer). Pro shows every invoice and every what-if and adds a statement for each customer, the Excel workbook and CSV exports.
Is this legal advice?
No. Latetally does the arithmetic from gov.uk's published rules on the invoices you enter. For disputes or court claims, take advice.