How to chase unpaid invoices in the UK

Make it easy to pay in the first place

Many late payments are simply forgotten. Put clear payment terms and a due date on every invoice, send it straight away, and give an easy way to pay, a Pay online button that takes a card gets paid fastest.

A simple chasing routine

Keep it friendly and regular:

• A few days before it’s due: a polite reminder
• On the due date: “this is due today”
• A week late: a reminder with the invoice attached
• Two weeks late: a phone call
• A month late: a formal letter explaining what happens next

What you can charge business customers

For business-to-business debts, the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim statutory interest of 8% a year above the Bank of England base rate, plus fixed compensation for the cost of recovery: £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more.

If no payment date was agreed, payment is generally due 30 days after the customer received the invoice or the goods or services. This applies to business customers, not consumers.

If they still don’t pay

Send a formal letter before action giving a final deadline. If that fails, in England and Wales you can make a claim through the small claims track (for most claims up to £10,000), which you can start online with Money Claim Online. Scotland and Northern Ireland have their own procedures.

Keep a record

Note every reminder, call and promise to pay. If it goes further, a clear history makes everything easier, and it helps you spot which customers to ask for payment up front next time.