The EUR 40 late payment compensation (and the UK's GBP 40 to 100)
When a business client pays an invoice late, EU law gives you at least EUR 40 per invoice for recovery costs, on top of interest. In the UK the fixed sum is GBP 40, 70 or 100, depending on the invoice amount.
EU: at least EUR 40
Article 6 of Directive 2011/7/EU gives a business creditor a fixed sum of at least EUR 40 for each late invoice, without sending a reminder first. It sits on top of the statutory interest.
UK: GBP 40, 70 or 100
| Invoice amount | Fixed sum |
|---|---|
| Up to GBP 999,99 | GBP 40 |
| GBP 1.000 to 9.999,99 | GBP 70 |
| GBP 10.000 or more | GBP 100 |
Source: gov.uk, late commercial payments.
How Overdue Kit adds it
- EU law: EUR 40. UK law: the band for the invoice amount.
- If the invoice is in the same currency, the total includes the fixed sum. If not (for example a USD invoice under EU law), the letters say "plus the fixed compensation of EUR 40" instead of mixing currencies.
- Letter 2 mentions that interest and compensation apply. Letter 3, the formal notice, claims both with the amounts.
Example
Three invoices of EUR 800,00 each, all late, in a country on the EU minimum: 3 x EUR 40 = EUR 120 compensation, plus interest on each invoice.
Questions
How much can I add to a late invoice in the EU?
At least EUR 40 per late business invoice, as compensation for recovery costs (Directive 2011/7/EU, Article 6).
How much in the UK?
GBP 40 up to GBP 999,99, GBP 70 up to GBP 9.999,99, GBP 100 from GBP 10.000.
Is it per invoice or per client?
Per late invoice. Three late invoices from one client give three fixed sums.
Rates and sources as stored on 11 October 2026. Business-to-business debts only. Templates and calculations, not legal advice.