Chasing Late Invoices

Prevention first: agree your terms before you start

The best way to chase a late invoice is to never need to. Before starting any piece of work, agree — ideally in writing — on:

• Payment terms: when payment is due (7, 14, or 30 days from invoice date)
• Late payment charges: tell the client upfront that late payments accrue statutory interest. Most clients never miss a deadline once they know the clock is ticking
• A deposit: for larger projects, take 25–50% upfront. This also filters out clients who baulk at paying anything before they receive the work
• Milestone payments: for long projects, invoice at agreed stages rather than at the very end

Under UK law, the default payment term for B2B transactions is 30 days (Late Payment of Commercial Debts (Interest) Act 1998). If you have not agreed different terms, 30 days applies automatically.

Template 1: The friendly nudge (1 day late)

Send this the working day after the due date. Keep the tone light — the invoice may genuinely have been missed. Always re-attach the PDF and restate your bank details.

Subject: Invoice INV-[number] — friendly reminder

Hi [Name],

Just a quick note to flag that invoice INV-[number] for £[amount] was due on [date]. I know things get busy — please let me know if you need anything from my end to get it processed.

I have attached the invoice again for convenience. Payment details are below:

Account name: [Your name]
Sort code: [xx-xx-xx]
Account number: [xxxxxxxx]

Thanks very much,
[Your name]

Template 2: The firm follow-up (1 week late)

If there is no response after five working days, send a firmer email. The tone is still professional but signals that you are paying attention.

Subject: Invoice INV-[number] — now [X] days overdue

Hi [Name],

I am following up on my email from [date]. Invoice INV-[number] for £[amount] is now [X] days overdue. Could you please confirm when payment will be made?

If there is a query with the invoice or an issue with the payment process, please do let me know and I will help resolve it as quickly as possible.

Invoice is attached. Payment details:

Account name: [Your name]
Sort code: [xx-xx-xx]
Account number: [xxxxxxxx]

I look forward to hearing from you.
[Your name]

Template 3: Statutory interest notice (2–3 weeks late)

Under the Late Payment of Commercial Debts (Interest) Act 1998, you have the automatic right to charge interest on overdue B2B invoices at 8% above the Bank of England base rate. As of 2026, with the base rate at 4.25%, that is 12.25% per annum. You are also entitled to a fixed debt recovery charge:

• £40 for debts under £1,000
• £70 for debts between £1,000 and £9,999
• £100 for debts of £10,000 or more

You do not need to have mentioned this in your original contract — these rights arise automatically under statute. Mentioning them in an email tends to focus minds very quickly.

Subject: Invoice INV-[number] — statutory interest accruing

Hi [Name],

Invoice INV-[number] for £[amount] is now [X] days overdue. I have not received a response to my previous reminders dated [dates].

I am writing to notify you that under the Late Payment of Commercial Debts (Interest) Act 1998, statutory interest is now accruing on this debt at 12.25% per annum (8% above the current Bank of England base rate of 4.25%). A fixed debt recovery charge of £[40/70/100] also applies.

As of today, the total amount outstanding is £[original amount + interest to date + charge].

Please arrange payment immediately to avoid this amount increasing further. If you believe there is a dispute with the invoice, please contact me in writing within 7 days.

Payment details:
Account name: [Your name]
Sort code: [xx-xx-xx]
Account number: [xxxxxxxx]

[Your name]
[Your address]

Template 4: Letter before action (final step before court)

If emails are being ignored, send a formal letter before action (LBA) — this is a legal requirement before you can issue a county court claim. Send it by recorded post so you have proof of delivery. Set a clear 7-day deadline.

LETTER BEFORE ACTION

[Your full name and address]
[Date]

[Client full name and address]

Dear [Name],

Re: Overdue invoice INV-[number] — £[total amount including interest]

Despite repeated requests for payment, the above invoice remains unpaid. I am writing to give you formal notice that if the outstanding amount of £[total] is not received within 7 days of the date of this letter, I will issue proceedings in the county court without further notice to recover the debt plus court fees and any additional interest.

You are entitled to seek independent legal advice before this deadline.

If you wish to dispute this claim, please contact me in writing within the 7-day period stating your grounds.

Yours sincerely,
[Your name]

Small Claims Court

If the LBA deadline passes with no payment or response, you can issue a claim online at moneyclaim.gov.uk. The process:

• Create an account and enter the claim details — your name, the defendant's name and address, the amount owed, and a brief description of the debt
• Pay the court fee (£35 for claims up to £300; scaling up to £455 for claims up to £10,000) — these fees are added to the debt if you win
• HMCTS serves the claim on the defendant, who has 14 days to respond
• If the defendant does not respond, you can request a default judgment — the court rules in your favour automatically
• With a county court judgment (CCJ), you can enforce payment through bailiffs, attachment of earnings, or a charging order on property

A CCJ affects the defendant's credit rating for six years, which is a powerful incentive for most businesses to pay before it gets to that stage. Many debtors settle immediately once they receive the court claim form.

Claims under £10,000 are automatically allocated to the small claims track, which is designed to be used without a solicitor. For amounts above £10,000, consider taking legal advice.

If the client's company has gone insolvent

If a client company enters administration or liquidation, your invoice becomes an unsecured creditor claim — meaning you join a queue behind secured creditors (banks), preferential creditors (employees), and HMRC. Unsecured creditors often recover little or nothing.

Submit a proof of debt to the appointed administrator or liquidator as soon as possible. You can find who was appointed via the Companies House insolvency register. Keep all documentation — invoices, emails confirming the work, contracts.

This is why deposits and milestone payments matter: if a company collapses mid-project, you have lost only part of your fee rather than all of it.

Better terms going forward

Every bad debt experience is a lesson in commercial terms. After dealing with a late payer, review your standard terms:

• Shorter payment terms: switch from Net 30 to Net 14 or even Net 7 for smaller jobs
• Upfront deposits: 25–50% before work starts, remainder on delivery
• Pause clause: include a clause that allows you to pause or cease work if an invoice is more than 14 days overdue
• Late payment clause: reference the Late Payment Act explicitly in your terms so clients know from day one that interest will accrue
• Credit check new clients: for large projects, a basic Companies House check on a new client's financial history costs nothing and takes two minutes

The freelancers who rarely have late payment problems are the ones who discuss terms confidently upfront and enforce them consistently. A client who knows you mean business pays promptly.