Charge Interest on Late Invoices — Automatically
AutoSettle calculates statutory interest at 11.75% per annum (BoE base rate + 8%) on every overdue invoice — and posts the penalty straight to Xero.
The longer they take to pay, the more interest accrues. Your legal right, enforced daily.
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Syncs penalty invoices to XeroInterest Calculation
FORMULA
BoE Base Rate
3.75%
Statutory Supplement
+8%
Total Annual Rate
11.75%
Calculated Daily
Interest accrues from the day after the due date. The longer they wait, the more they owe.
You're in full control.
The figures below are the statutory UK defaults. Inside AutoSettle every workspace can set a custom annual interest rate, override the £40 / £70 / £100 compensation tiers, or turn late fees or interest off entirely — selectively per debtor or across the whole workspace.
See exactly how interest adds up
Real examples showing how statutory interest is calculated on overdue invoices. Every penny is accounted for.
INV-1042
£4,200 · 67 days overdue
INV-1038
£2,800 · 28 days overdue
INV-1051
£12,400 · 45 days overdue
Formula: (Amount × 11.75% ÷ 365) × Days Overdue · BoE base rate as of March 2025
Daily accrual. Fully automatic.
Statutory interest accrues from the day after the invoice due date. AutoSettle calculates the exact amount based on the current BoE base rate, the invoice value, and the number of days overdue.
When triggered — either automatically by your AI controller at the "Late Fee Notice" stage or manually — the interest is calculated to the penny and included in a penalty invoice posted to Xero.
Accrues daily
Interest compounds day by day — the longer they wait, the more they owe
Always current rate
Uses the latest BoE base rate (currently 3.75%) plus 8% statutory supplement
Per-invoice precision
Each invoice calculated individually based on its own amount and overdue period
AI-triggered or manual
Triggered at the right recovery stage or manually from any debtor profile
Interest Accrual Timeline
£5,000 invoice at 11.75% p.a.
After 90 days, a £5,000 debt accrues £154.11 in statutory interest alone — plus fixed compensation.
Combined with fixed compensation
Statutory interest and fixed late fees are separate entitlements. AutoSettle calculates both and combines them into a single penalty invoice.
Combined into one penalty invoice
Posted to Xero automatically
Posted to your Xero account automatically
Penalty invoices are created as authorised invoices in Xero. AutoSettle detects the right revenue account — or uses your per-organisation configuration — and syncs the penalty with full references.
Revenue account auto-detection (Interest Income, Other Income, Sales)
Per-organisation account mapping for multi-tenant Xero
Full source invoice references on every penalty
Automatic retry on failed syncs
Account Detection Priority
User-configured per-org settings
Your chosen account in Payment Settings
Interest Income accounts
Active accounts named 'Interest Income' (case-insensitive)
Other Income accounts
OTHERINCOME type revenue accounts
Sales / Revenue accounts
SALES or REVENUE type accounts as fallback