Getting paid
How to chase an unpaid invoice in the UK
7 min read
Late payment is the single most common cash-flow problem for freelancers and small businesses. The fix is rarely a tougher tone — it is a predictable sequence you follow every time, so nothing slips and you never have to invent wording under pressure.
Set the ground rules before you invoice
Most chasing problems start at the quote. Agree payment terms in writing, state the due date on the invoice itself rather than only "30 days", and name the person who approves payment as well as the person you deal with day to day.
Ask larger clients how their accounts payable process works: many run weekly or fortnightly payment runs, so an invoice submitted a day late waits a fortnight, not a day.
- Put payment terms in the contract and repeat them on the invoice.
- Include a unique invoice number, the due date, and a purchase order reference if the client uses one.
- Send invoices to the accounts inbox and copy your day-to-day contact.
A reminder sequence that works
Keep every message short. One paragraph of context, one clear ask, and the payment details. Long emails invite long silences.
- 1.Three days before the due date: a short, friendly "due this week" note with the invoice attached again. This catches missing paperwork before it becomes lateness.
- 2.Day 1 overdue: assume an administrative slip. Restate the amount, the invoice number and the payment details, and ask whether anything is needed from you.
- 3.Day 7 overdue: move from your contact to the accounts inbox, ask for a specific payment date, and mention that work in progress may pause.
- 4.Day 14 overdue: a firmer note that names the consequence you are prepared to follow through on — pausing delivery, withholding files, or adding statutory interest.
- 5.Day 30 overdue: a formal letter before action, sent by email and post, giving a clear deadline before you escalate.
Your right to interest and costs
In the UK, commercial debts can carry interest under the Late Payment of Commercial Debts (Interest) Act 1998, alongside a fixed sum towards recovery costs. The statutory rate is linked to the Bank of England base rate, so check the current figure on GOV.UK before you quote a number in writing.
Many small businesses never charge interest, and that is a legitimate commercial choice. What matters is that you know you can. Mentioning the right calmly at day 14 often moves an invoice up the payment run without souring the relationship.
- Check the current statutory interest rate on GOV.UK rather than reusing an old figure.
- State interest as a possibility first; apply it only after your written deadline passes.
- Keep every reminder you send — a clear paper trail is what makes escalation easy.
When to escalate
If a letter before action passes without a payment date, your realistic routes are a formal demand from a solicitor, a debt recovery service, or the small claims track of the county court for straightforward debts. Court fees scale with the amount claimed, and you can usually file online.
Before escalating, weigh the invoice against the time and fees involved, and whether you want future work from this client. For small sums, a firm deadline plus paused work resolves more cases than court does.
Stop the pattern repeating
- Take a deposit or stage payments on projects over a few thousand pounds.
- Invoice on delivery, not at month end, so the clock starts sooner.
- Offer a payment link or bank details in every message to remove friction.
- Track due dates in one place and chase on a schedule instead of when cash gets tight.
Common questions
- How soon can I chase a late invoice?
- The day after the due date. A short, factual reminder on day one is normal business practice and catches the most common cause of lateness — an invoice that never reached the accounts inbox.
- Can I charge interest on a late invoice in the UK?
- Commercial debts can carry statutory interest plus a fixed recovery cost under the Late Payment of Commercial Debts (Interest) Act 1998, unless your contract sets a substantial alternative remedy. Check the current statutory rate on GOV.UK before stating a figure.
- Should I stop work while an invoice is unpaid?
- Only if your contract allows it and you are prepared to follow through. Pausing new work is usually more effective than withdrawing what has already been delivered, and it should be announced in writing before it happens.