Hi everyone, a year on from my last engagement we wanted to provide an update for you all here.
As many will be across we're in the midst of making a lot of iterations and improvements to new invoicing leading up to the retirement of classic invoicing in September (2024).
We have a fair amount of work lined up in the teams schedule over the coming months and to give an indication there isn't any committed plans around a function to add interest to invoices.
That said, we do have a team that have picked up and are considering how we might solve this with the technology in new invoicing - It's early days on this yet, but I'll share if there's any progress on this for you all here.
In the meantime, as has been shared by others over time there are a few ways you could accomplish this today;
Edit and add a new line to your invoice to add the late fee - you could make use of Xero's inbuilt calculator for this, or
Edit and add a 'mark up' to each line of your invoice - again Xero's inbuilt calculator could help with calculating the amounts
Explore Xero's app store to see if you can find an integration that works for your business needs
In an effort to prevent late payment of invoices Credit limits may help in being able to prevent customers raising too much debt with your business
We appreciate the options above don't automate the full process of what you're asking here, and we will share if there's any news. Thanks
Hi everyone, a year on from my last engagement we wanted to provide an update for you all here.
As many will be across we're in the midst of making a lot of iterations and improvements to new invoicing leading up to the retirement of classic invoicing in September (2024).
We have a fair amount of work lined up in the teams schedule over the coming months and to give an indication there isn't any committed plans around a function to add interest to invoices.
That said, we do have a team that have picked up and are considering how we might solve this with the technology in new invoicing - It's early days on this yet, but I'll share if there's any progress on this for you all here.
In the meantime, as has been shared by others over time there are a few ways you could accomplish this…
Like many here, I got tired of waiting for this, so I built a workaround for UK businesses. Disclosure: I’m the founder.
LatePilot connects to Xero and lists your overdue sales invoices with the statutory interest and fixed sum worked out under the Late Payment of Commercial Debts (Interest) Act 1998:
8% over the Bank of England base rate, fixed per debt
plus the £40, £70 or £100 fixed sum per invoice
With one click it creates a draft invoice in Xero for those amounts, one per customer, with each line explaining the period and rate. Nothing is sent or approved until you do it in Xero yourself.
For example, a £5,000 invoice paid 60 days late (due in the second half of 2026) comes to £96.58 interest + £70 fixed sum = £166.58.
Limits, so nobody wastes their time: it’s UK only (GBP invoices, UK-registered organisations), it’s in free beta, and automatic reminder sending isn’t built yet.
Like many here, I got tired of waiting for this, so I built a workaround for UK businesses. Disclosure: I’m the founder.
LatePilot connects to Xero and lists your overdue sales invoices with the statutory interest and fixed sum worked out under the Late Payment of Commercial Debts (Interest) Act 1998:
8% over the Bank of England base rate, fixed per debt
plus the £40, £70 or £100 fixed sum per invoice
With one click it creates a draft invoice in Xero for those amounts, one per customer, with each line explaining the period and rate. Nothing is sent or approved until you do it in Xero yourself.
For example, a £5,000 invoice paid 60 days late (due in the second half of 2026) comes to £96.58 interest + £70 fixed sum = £166.58.
Limits, so nobody wastes their time: it’s UK only (GBP invoices, UK-registered organisations), it’s in free beta, and automatic reminder sending isn’t built yet.
If you just want to check a figure without connecting anything, there’s a free calculator: https://latepilot.com/en/late-payment-interest-calculator
The Xero version is here: https://latepilot.com/en/xero-payment-reminders
I’d really value feedback from people in this thread on what’s missing. You can reply here or email hello@latepilot.com.
I still hope Xero builds this natively. Until then, this fills the gap.