What UK businesses can charge on late commercial payments
Statutory interest lets businesses charge for late commercial payments. Here is the headline rule — and why you should always check your contract and current guidance.
8% + base rate
statutory interest on late business-to-business payments (GOV.UK)
Many business owners do not realise they may be entitled to charge interest — and reasonable debt-recovery costs — when another business pays late.
The headline rule
For business-to-business transactions, GOV.UK guidance states that statutory interest for late commercial payments is 8% plus the Bank of England base rate. This applies to commercial (business-to-business) debts, and the exact position can depend on the contract between the parties.
8% + base rate
statutory interest on late B2B commercial payments (GOV.UK)
Because the base rate changes and contract terms can vary, always check the current GOV.UK guidance and your own agreement before charging interest. Using this as a right you are entitled to — rather than a threat — usually keeps the conversation professional.
This is general information, not legal or financial advice.
Sources
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