How to Chase Late Invoice Payments in the UK

If you're a UK tradesperson or contractor, you've probably dealt with a client who's slow to pay — or worse, one who ignores your invoices entirely. Late payments are one of the biggest headaches for self-employed workers, but there are practical steps you can take to recover what you're owed.

Step 1: Send a Polite Reminder

Most late payments aren't malicious — people forget, lose emails, or get busy. Your first step should always be a friendly nudge. Send a short email or text a day or two after the due date:

Hi [Client],

Just a quick reminder that invoice [number] for £[amount] was due on [date]. I've reattached it for your convenience. Could you let me know when I can expect payment?

Thanks,
[Your name]

Keep it short, professional, and non-confrontational. Reattach the invoice PDF so they don't have to search for it.

Step 2: Follow Up More Firmly

If a week passes with no response, send a firmer follow-up. This time, be more direct about the payment being overdue:

Hi [Client],

I'm following up on invoice [number] for £[amount], which is now [X] days overdue. I'd appreciate it if you could arrange payment at your earliest convenience.

If there's an issue with the invoice, please let me know so we can resolve it.

Thanks,
[Your name]

If email isn't getting a response, try calling. Sometimes a quick phone call resolves things faster than a chain of emails.

Step 3: Send a Formal Letter Before Action

If you're still not getting paid after two or three reminders over a few weeks, it's time to send a Letter Before Action (also called a Letter Before Claim). This is a formal letter that tells the client you intend to take legal action if they don't pay within a set period — usually 14 days.

The letter should include:

• The invoice number and amount owed
• The original due date and how many days overdue it is
• A clear statement that this is a formal notice
• A deadline for payment (typically 14 days from the date of the letter)
• A statement that you will pursue legal action if payment is not received

A Letter Before Action often prompts payment on its own, because the client knows you're serious. Send it by email and recorded post if possible.

Your Legal Right to Charge Interest

Under UK law (the Late Payment of Commercial Debts (Interest) Act 1998), you have the right to charge statutory interest on late business-to-business payments. The rate is 8% per year plus the Bank of England base rate.

You can also claim a fixed compensation amount for the cost of recovering a late payment:

• £40 for debts up to £999.99
• £70 for debts between £1,000 and £9,999.99
• £100 for debts of £10,000 or more

You don't need to have mentioned this on your original invoice to claim it — it's a statutory right. However, including late payment terms on your invoices (see our invoice checklist) makes your position even stronger.

Note: statutory interest applies to business-to-business transactions. If your client is a private individual (e.g. a homeowner), different rules may apply. Consider seeking legal advice in that situation.

Step 4: Small Claims Court

If the Letter Before Action doesn't work, you can make a claim through the County Court. For debts under £10,000, this goes through the small claims track, which is designed to be used without a solicitor.

You can start a claim online at GOV.UK — Make a court claim for money. There's a fee (starting from £35 for claims up to £300), which you can add to the amount you're claiming.

Once a claim is filed, the client has 14 days to respond. Many clients pay up at this stage to avoid a County Court Judgment (CCJ) on their record, which can seriously affect their ability to get credit.

How to Prevent Late Payments in the First Place

Prevention is always better than chasing. Here are some practical steps to reduce late payments:

• Agree payment terms before starting work — get it in writing, even in a text message
• Invoice promptly — send the invoice the day the work is complete
• Use short payment terms — "Due on receipt" or "7 days" works well for trade work
• Make it easy to pay — include bank details clearly on every invoice
• Take a deposit — for larger jobs, ask for a deposit or staged payments
• Include late payment terms — mention statutory interest rights on your invoice
• Keep records — save copies of every invoice and all communication

Create Professional Invoices That Get Paid

A clear, professional invoice with all the right details is less likely to be disputed or ignored. InvoiceJob helps you create invoices that include everything you need — payment terms, bank details, job references, and more. Free to use, no signup required.

For more on what to include, see our beginner's guide to sole trader invoicing.