You're legally owed interest on every late invoice
Over 80% of UK businesses never charge statutory penalties on late payments — leaving thousands of pounds on the table every year. AutoSettle enforces your legal right automatically.
One rolling invoice per debtor in Xero or QuickBooks. Automatically recalculated every month. Every email reflects the latest accurate figures.
14-day free trial · Cancel anytime
Xero
QuickBooksRolling Penalty Invoice
Auto-updated monthlyPEN-0042 · Apex Digital Ltd
92 days overdueOriginal debt: £4,200.00 across 2 invoices
BoE 3.75% + 8% · 92 days
One-time statutory fee
Synced — same invoice, latest figures
Emails synced — next escalation shows £202.16 total
80%+
of UK businesses never charge penalties
11.75%
statutory interest rate per annum
1
rolling invoice per debtor
You're entitled to charge penalties on every late B2B invoice
Under the Late Payment of Commercial Debts (Interest) Act 1998, any UK business can charge statutory interest and fixed compensation the moment a B2B invoice passes its due date. The right exists automatically — you don't need to write it into your terms.
Yet the vast majority of businesses never exercise this right. Why? Because the calculations are complex, the admin is painful, and most accounting software doesn't support it. AutoSettle changes that completely.
11.75% per annum
BoE base rate (3.75%) + 8% statutory interest
£40 / £70 / £100
Fixed compensation based on invoice size
Calculated daily
Interest accrues every day the invoice remains unpaid
Legally enforceable
Your statutory right under UK law since 1998
What you're leaving on the table
This amount accrues automatically every day these invoices remain unpaid.
One rolling invoice in Xero. Always accurate.
AutoSettle doesn't flood your Xero account with penalty invoices. It creates one invoice per debtor and updates it automatically as interest accrues — keeping your books clean and your debtor's balance crystal clear.
How the rolling invoice works
Invoice becomes overdue
AutoSettle detects the overdue invoice and calculates initial statutory interest + fixed compensation.
Penalty invoice created in Xero
A single authorised invoice is generated and posted to your chosen revenue account. One invoice per debtor.
Monthly auto-recalculation
Every month, AutoSettle recalculates accrued interest and updates the same Xero invoice with the latest figures.
Emails always reflect latest total
When your AI controller sends reminders, escalations, or legal notices, the penalty totals are pulled fresh — always accurate.
Old way vs AutoSettle
Without
Multiple penalty invoices per debtor
AutoSettle
One rolling invoice — always up to date
Without
Manually calculate interest each month
AutoSettle
Auto-recalculated monthly
Without
Forget to update Xero
AutoSettle
Xero invoice updated automatically
Without
Emails show stale penalty figures
AutoSettle
Every email pulls latest totals
Without
Fixed compensation charged multiple times
AutoSettle
Charged once — tracked and never duplicated
Without
No audit trail
AutoSettle
Full history of every recalculation
Per-Debtor Controls
Apex Digital Ltd
3 invoices · £8,400 overdue
Smith & Co
1 invoices · £2,100 overdue
Northern Freight
2 invoices · £15,600 overdue
Full control. Per debtor.
Not every debtor situation is the same. AutoSettle lets you enable or disable penalties on a per-debtor basis — so you can enforce charges on persistent late payers while taking a softer approach with valued clients going through temporary difficulties.
When penalties are disabled for a debtor, the system skips penalty creation at the late fee stage and removes penalty references from email templates — ensuring your communications are always contextually appropriate.
Toggle per debtor
Enable or disable penalties from any debtor profile
AI respects the setting
Your AI controller skips penalty stages when disabled
Emails adapt automatically
Templates omit penalty language when charges are off
Global override available
Enable or disable penalties workspace-wide from settings
Every email. Every figure. Always accurate.
When your AI controller sends a reminder, escalation notice, or legal demand, it doesn't use stale numbers. AutoSettle refreshes penalty calculations before every critical communication — ensuring your debtor sees the true, current balance.
This means whether you're at the "Friendly Reminder" stage or the "Final Demand Before Legal Action" stage, the total outstanding — including all accrued statutory interest and compensation — is recalculated and injected into the email automatically.
Pre-send recalculation
Penalties refreshed before every escalation email
Template variables updated
{{total_balance}}, {{penalty_amount}}, {{interest_accrued}} always current
Xero synced simultaneously
Rolling invoice updated at the same time as the email send
Debtor sees one clear figure
No confusion — one invoice, one total, always accurate
Email Preview — Escalation Stage
To: accounts@apexdigital.co.uk
Subject: Outstanding balance — £4,402.16 including statutory charges
Dear Apex Digital,
Despite previous correspondence, the following invoices remain unpaid:
These charges are applied under the Late Payment of Commercial Debts (Interest) Act 1998. We urge you to settle this balance immediately to avoid further action.
Penalties are part of the Recovery Engine
Penalty enforcement is fully integrated into AutoSettle's four-stage recovery process. Your AI controller knows exactly when to trigger penalties, recalculate interest, and escalate — all automatically.
Understand your rights in detail
Explore how each component of the UK Late Payment Act works — and how AutoSettle automates it for you.
Late Payment Fees Explained
Learn about the fixed compensation tiers (£40, £70, £100) UK businesses can charge on overdue commercial invoices — how they're calculated, when they apply, and how AutoSettle automates the entire process.
Read full guideStatutory Interest Explained
Understand how statutory interest is calculated at 11.75% p.a. (Bank of England base rate + 8%), how it accrues daily, and how AutoSettle maintains a rolling Xero invoice that updates automatically each month.
Read full guide