UK businesses are entitled to charge statutory interest of 8% above the Bank of England base rate on late commercial payments under the Late Payment of Commercial Debts (Interest) Act 1998. A £40–£100 fixed compensation charge also applies.

• Default payment term is 30 days unless agreed otherwise
• Statutory interest: 8% + Bank of England base rate
• Fixed debt recovery costs: £40 (under £1,000), £70 (£1,000–£9,999), £100 (£10,000+)
• Can be used as standalone T&Cs or appended to quotes/contracts
• VAT invoice requirements apply if VAT registered

Legal reference: Late Payment of Commercial Debts (Interest) Act 1998; Late Payment of Commercial Debts Regulations 2002