Payment terms calculator: when is a business invoice late?
When does a business invoice become late in the UK? Enter the invoice date (and, if you know them, the dates of receipt and delivery): the calculator shows the default due date and the usual 60-day limit, with the days left.
Calculating…
Payment terms between UK businesses
If you agreed a payment date with your customer, that date applies. If you did not, the Late Payment Act 1998 treats the invoice as late 30 days after the later of two dates: the day the customer received the invoice, and the day the goods or services were delivered.
Agreed payment terms between businesses are usually no longer than 60 days. Longer terms are allowed if they are fair to both businesses: today there is no statutory cap, which is why the calculator shows 60 days as a guideline, not a limit.
Public sector buyers usually pay within 30 days: under the Procurement Act 2023, public buyers must pay invoices within 30 days.
When the receipt date is not entered, the calculator assumes the invoice was received on its date. Statutory interest starts the day after the due date.
- The Commercial Payments Bill would set a 60-day maximum (30 days for public buyers) for contracts signed after it comes into force. It is not law yet and is not applied here.
Official sources
- GOV.UK — Late commercial payments: charging interest and debt recovery
- legislation.gov.uk — Late Payment of Commercial Debts (Interest) Act 1998
- GOV.UK — Procurement Act 2023 guidance: electronic invoicing and payment
- UK Parliament — Commercial Payments Bill [HL] (not yet law)
Rules checked on 20 October 2026. Free tool for information only: it is not legal or tax advice. The rules are checked against the official sources listed on this page; check your own situation before acting.
Frequently asked questions
What if no payment terms were agreed?
The invoice is late 30 days after the customer received it or after delivery of the goods or services, whichever is later. Statutory interest runs from the next day.
Can I agree payment terms longer than 60 days?
Yes, if the terms are fair to both businesses. GOV.UK says agreed terms are usually no more than 60 days between businesses, but there is no legal cap today.
Are public sector invoices paid faster?
Usually within 30 days: the Procurement Act 2023 requires public buyers to pay invoices within 30 days.
Will the 60-day limit become law?
The Commercial Payments Bill proposes a 60-day maximum (30 for public buyers), but it is still a bill. If passed, it would apply only to contracts signed after it comes into force.
Further reading
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