Turn Late Payments Into Financial Consequences
AutoSettle automatically calculates and applies statutory penalties on overdue invoices — then posts them directly to your Xero account.
UK businesses have the legal right to charge interest and fixed compensation on late commercial payments. AutoSettle enforces that right automatically.
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Posts penalty invoices to XeroPenalty Breakdown
INV-1042 · Apex Digital
67 days overdueOriginal debt: £4,200.00
Posted to Xero
Invoice PEN-0042 synced to Interest Income account
£2.4m
recovered through AutoSettle
100%
UK statutory compliance
0
manual penalty invoices needed
You already have the legal right to charge penalties
Under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses can charge statutory interest and fixed compensation on overdue B2B invoices. Most businesses don't exercise this right because the calculations are complex and manual.
AutoSettle automates the entire process — calculating penalties, generating invoices, and posting them to Xero — so you enforce your legal rights without lifting a finger.
Auto-calculated
Statutory interest and fixed compensation calculated to the penny
Auto-invoiced
Penalty invoices created and posted to Xero automatically
Fully compliant
Follows the Late Payment Act 1998 — legally enforceable
AI-triggered or manual
Triggered by your AI controller at the right stage, or manually anytime
Manual vs AutoSettle
Without
Calculate interest manually
With AutoSettle
Auto-calculated daily
Without
Look up BoE base rate
With AutoSettle
Always uses current rate
Without
Create penalty invoices by hand
With AutoSettle
Auto-generated in Xero
Without
Forget to charge penalties
With AutoSettle
AI triggers at the right stage
Without
One generic approach
With AutoSettle
Per-invoice penalty calculations
Two penalty types, fully automated
AutoSettle handles both statutory interest and fixed compensation — the two penalties UK law entitles you to charge on overdue commercial debts.
Statutory Interest
Bank of England base rate (currently 4.5%) plus 8% per annum, calculated daily for the overdue period. Applied per invoice.
Example
£5,000 invoice, 45 days overdue
= £72.43 interest
(£5,000 × 11.75% ÷ 365 × 45 days)
Fixed Late Fees
A fixed compensation charge applied per overdue invoice, based on the original debt value — as defined by UK law.
Compensation tiers
Xero Sync Flow
Penalty triggered
AI controller reaches late fee stage — or you trigger manually
Calculation runs
Interest + compensation calculated based on invoice value and overdue days
Invoice created
Penalty invoice auto-generated with full breakdown and references
Posted to Xero
Invoice synced to your chosen revenue account per Xero organisation
Penalty invoices posted straight to Xero
When a penalty is created, AutoSettle generates an authorised invoice in Xero automatically. It detects the right revenue account — or uses your per-organisation configuration — so every penalty lands in the correct place.
Multi-org? No problem. AutoSettle resolves the correct Xero tenant from source invoices and maps penalties to the right accounts.
Auto-detects Interest Income or revenue accounts
Per-organisation account mapping for multi-tenant setups
Full penalty reference linked to source invoices
Retry mechanism handles failed syncs automatically
Triggered by your AI controller — or manually
Penalties integrate into the Recovery Engine. When your AI controller reaches the "Late Fee Notice" stage, penalties are calculated and created automatically. Or trigger them manually from any debtor profile.
The "Include statutory charges" toggle is globally linked across all AI controller personas — Ruby, Mason, and Alex — ensuring consistent enforcement across your workspace.
Recovery Timeline
Friendly reminder
Second reminder
Firm reminder
Late Fee Notice
Payment plan offer
Final demand
Why automate penalties?
Enforce your legal rights, incentivise faster payment, and recover more — without manual work.
Recover more money
Statutory penalties add to your recovery — money you're already entitled to
Incentivise faster payment
Debtors pay faster when penalties are consistently applied
Legal compliance
Every calculation follows the Late Payment Act 1998
Zero manual work
Auto-calculated, auto-invoiced, auto-synced to Xero/QuickBooks
AI-integrated
Penalties triggered at the right stage by your AI controller
Per-invoice precision
Each penalty calculated individually based on amount and overdue period
Built for businesses tired of absorbing late payment costs
SMEs owed money on overdue invoices
Exercise your legal right to charge penalties without manual effort
Finance teams managing receivables
Automate penalty enforcement across your entire debtor book
Businesses using Xero
Penalty invoices posted automatically to your Xero account
Explore penalty tools
Statutory Interest
Automatically calculated using Bank of England base rate + 8% per annum, applied daily for the overdue period.
Late Fees
Fixed compensation charges of £40, £70, or £100 automatically applied based on invoice value under UK law.
Legal Compliance
All penalty calculations follow the Late Payment of Commercial Debts (Interest) Act 1998 — fully compliant.
Accounting Sync
Penalty invoices are automatically created and posted to your Xero or QuickBooks account — no manual data entry.