Can I charge late fees in the EU without a contract?

Yes. Under EU Directive 2011/7/EU, statutory interest (ECB reference rate + 8 percentage points) and a recovery fee of at least €40 apply automatically once the payment deadline lapses, even without a contractual clause.

What's the UK statutory late fee?

Bank of England base rate plus 8% interest, plus fixed compensation of £40 (debts under £1,000), £70 (£1,000–£9,999.99), or £100 (£10,000+). Additional reasonable recovery costs may also be claimed.

What can I charge in the US?

There is no federal limit, but late fees should be agreed in advance and stated on the invoice. Common practice is 1% to 1.5% per month, capped by state usury laws. The Prompt Payment Act covers federal contractors specifically.

When does the payment clock start?

Under the EU Directive, the default is 30 days from invoice receipt or delivery of goods/services if no other date is agreed. Maximum is 60 days for B2B except in narrowly defined cases. UK rules are similar.

Do I need to mention the late fee on the invoice?

In the EU and UK it's not legally required for statutory interest to apply — it kicks in automatically. In the US it generally is required. Either way, stating it clearly improves your collection rate.

How do I calculate the actual interest owed?

Use the daily statutory rate (annual rate ÷ 365) multiplied by the overdue principal multiplied by the number of days late. Our late fee calculator at /late-fee-calculator does this automatically.

Late Payment Fees: Legal Limits by Country (EU, US, UK)

How much can you legally charge for late payment in the EU, UK, and US? Statutory interest rates, recovery fees, and what to write on the invoice.