How to chase a late payment in the UK without losing the client
Most freelancers are too polite, so invoices sit unpaid for months — this is the exact escalation ladder from friendly nudge to small-claims court and what you can legally claim at each step.
When you can legally start chasing
You can start chasing from the day after your due date. If your contract is silent, UK law implies a default of 30 days from invoice or acceptance of goods/services. Keep every reminder by email for a paper trail.
For more on what an invoice must include, see our guide to what an invoice must include.
The escalation ladder
Step 1: Friendly reminder (a few days after the due date)
Subject line: Invoice [number] from [date].
Body:
Hi [name],
Hope all's well. Just a friendly nudge that invoice [number] for £[amount] was due on [date]. If payment is already on its way, please ignore this — otherwise you can pay using the details on the invoice.
Thanks!
[Your name],
[Business]
Step 2: Firm follow-up (around two weeks overdue)
Subject: Overdue: invoice [number] – £[amount].
Body:
Hi [name],
Our records show that invoice [number] for £[amount], due on [date], is still outstanding. Please arrange payment within 7 days of this email, or reply to let us know if there's an issue we can resolve.
If the debt remains unpaid after [date], we will start charging statutory late-payment interest under the Late Payment of Commercial Debts (Interest) Act 1998. Thanks,
[Your name]
Step 3: Letter before action (around four weeks overdue)
This is your formal final notice. State the amount owed, the statutory interest you are entitled to, any fixed compensation, and a total figure. Give them a deadline of 14 days from the letter, then claim via Money Claim Online.
Subject: Final notice – invoice [number] (£[amount]).
Body:
Dear [name],
We write in respect of invoice [number] for £[amount], due on [date], which remains unpaid. In addition to the original amount, we are entitled to statutory interest at [rate]% per annum from [due date] under section 7(2) of the Late Payment of Commercial Debts (Interest) Act 1998, and to fixed compensation under section 5A of the same Act.
The total now owed is £[total]. Please pay within 14 days of this letter. If we have not received payment by [date], we will issue a claim through Money Claim Online without further notice, and will seek recovery costs as well.
Step 4: Small claims court (if still unpaid)
Claims up to £10,000 go on the small claims track via Money Claim Online (moneyclaimonline.service.gov.uk). You don't need a lawyer. The issue fee depends on the claim value (£35 for up to £300, rising to £455 for £5,000.01–£10,000 — around £205 for a £5,000 claim). You generally can't recover your own costs on the small claims track, so weigh court against writing off a tiny debt as an expense.
What you can actually claim: statutory interest and compensation
The Late Payment of Commercial Debts (Interest) Act 1998 applies automatically to business-to-business invoices (not consumers buying for personal use). You don't need a clause unless your contract gives a substantial remedy. Interest runs from the due date at Bank of England base rate + 8% per annum. As of September 2026 that is 3.75% + 8% = 11.75% (the rate moves with base rate — check bankofengland.co.uk).
| Debt size | Fixed sum |
|---|---|
| Under £1,000 | £40 |
| £1,000 to £9,999.99 | £70 |
| £10,000 or more | £100 |
A £2,000 invoice 30 days late at the current 11.75% earns about £19 of statutory interest — and on top you can claim the £70 fixed compensation for debts in that band, roughly £89 extra for the inconvenience alone.
When to stop chasing
A debt becomes statute-barred six years after it fell due in England, Wales and Northern Ireland (Scotland's prescriptive period is five years). If the client goes bust or the amount is small relative to court fees, write it off as a business expense.
Chasing starts with a clean invoice
Invoices that state payment terms clearly get paid faster — our free tools make that part painless.
Late payment questions, answered
When can I start charging late payment interest?
From the day after your invoice falls due. Under the Late Payment of Commercial Debts (Interest) Act 1998 it's automatic for business-to-business invoices — no clause or reminder required.
How much is statutory late-payment interest in 2026?
Bank of England base rate plus 8% per annum. With Bank Rate at 3.75%, that's currently 11.75%. The rate moves with base rate, so check bankofengland.co.uk before you quote a figure.
Do I need late-payment terms in my contract?
No — the statutory rights apply by default unless your contract provides a substantial remedy of its own. But stating terms (we suggest 'pay within 7 days') sets expectations and makes chasing easier.
What if they still don't pay after all that?
Send a letter before action, then issue through Money Claim Online — claims up to £10,000 go on the small claims track where you can represent yourself without a lawyer.
How long can I keep chasing a debt?
Six years from when it fell due in England, Wales and Northern Ireland (five years in Scotland). A written acknowledgment or partial payment restarts the clock — so always chase by email.
Sources: Late Payment of Commercial Debts (Interest) Act 1998; Bank of England Monetary Policy Summary, September 2026 (Bank Rate 3.75%); GOV.UK court fee guidance for Money Claim Online issue fees and the six-year limitation period under the Limitation Act 1980. Figures correct as of September 2026; this guide is not legal advice.