How to Chase an Invoice in the UK — The Complete Guide

Late payments cost UK small businesses and freelancers billions of pounds every year. Most people either chase too softly (and get ignored) or wait too long to escalate (and lose leverage). This guide covers the full escalation process — from the first polite nudge to County Court proceedings — with the exact wording, timings, and legal rights you need.

£23.4bn

owed to UK SMEs in late payments Source: FSB, 2023

30%

of invoices paid late in the UK Source: Xero Small Business Insights

12.25%

UK statutory interest rate 8% + BoE base rate — check current rate

The UK invoice chasing timeline

The key to recovering late payment is following a clear escalation sequence. Each stage sends a stronger signal without burning the relationship unnecessarily.

Day 1 — invoice becomes overdue

Send a polite reminder email

Same day the invoice passes its due date, send a short friendly reminder. Assume it was an oversight — many late payments are. Keep it brief: the invoice number, amount, due date, and your payment details. Do not add late fee warnings at this stage.

Day 7–10 — no response

Follow up with a direct email

If you haven't heard back, send a second email. This time, be specific: reference your first email, restate the amount, and give a firm deadline — "I need payment by [date]." Also consider a phone call. A 60-second call gets faster results than a third email.

Day 14–21 — still unpaid

Send a firm final demand

Now add statutory interest to the amount and state it clearly. Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge 8% above the Bank of England base rate on B2B debts (verify the current rate before sending). Mention that a Letter Before Action will follow if payment is not received within 7 days.

Day 28–35 — no payment

Send a Letter Before Action (LBA)

A formal Letter Before Action puts the debtor on legal notice. It must include the total amount claimed (including interest and recovery costs), a payment deadline (14 days), and a statement that court proceedings will follow. Under the Pre-Action Protocol for Debt Claims, an LBA is required before you can file a County Court claim.

Day 49+ — LBA deadline passed

File a County Court claim

If the 14-day LBA deadline passes with no payment or response, file a claim through Money Claim Online (MCOL) at gov.uk. For debts under £10,000, the small claims track applies — simplified procedure, lower costs. The debtor has 14 days to respond. If they don't, you can request a default judgment.

What to say — and what not to say

Do:

State the invoice number and exact amount in every communication
Give specific deadlines ("by Friday 4 July") not vague ones ("soon")
Keep a record of every email, call, and message
Reference your legal rights clearly in the final demand and LBA
Send the LBA by email AND post (Royal Mail Signed For)

Don't:

Send the same polite email three times and wonder why it's not working
Threaten court action and then do nothing — it destroys credibility
Be aggressive or rude — it gives the debtor grounds to counter-claim for harassment
Wait more than 90 days without escalating — leverage diminishes over time

Your legal rights as a UK creditor

If you're a UK business owed money by another UK business (B2B), the Late Payment of Commercial Debts (Interest) Act 1998 gives you automatic rights to:

Statutory interest: 8% + Bank of England base rate from the day after the payment due date (check current rate)
Debt recovery costs (B2B only): £40 for debts up to £999 · £70 for £1,000–£9,999 · £100 for £10,000+
Reasonable legal costs if the debt is taken to court

You don't need a contract clause to claim these — they apply automatically to all B2B transactions in the UK.

💡 Example: If a client owes you £3,500 and hasn't paid for 45 days, you can claim:
Principal: £3,500 + Statutory interest (45 days at 12.25%): £52.88 + Recovery cost: £70 = £3,622.88 total

What to do if they say "I'll pay next week"

This is the most common delaying tactic. The right response is to confirm it in writing immediately: "Thanks for confirming. I'll expect payment by [specific date]. I'll follow up if I don't see it by then."

If that date passes without payment, you now have written evidence of a broken promise — which strengthens your position if the debt goes to court.

What to do if they dispute the invoice

A debtor can dispute all or part of an invoice. If the dispute is genuine, you may need to negotiate. If it's a delaying tactic, document everything and push forward with the LBA process.

Under the Pre-Action Protocol, both parties must make a genuine attempt to resolve the dispute before going to court. This means responding to any counter-claims in writing and keeping records of all correspondence.

When to use a debt collection agency

For debts where the debtor is unresponsive but clearly has assets, a debt collection agency can be useful — particularly for amounts too small to justify court fees. They typically charge 10–25% of the recovered amount on a no-win, no-fee basis. Use them after the LBA has been sent and the deadline has passed without response.

Taking a debtor to the County Court

For debts up to £100,000, the County Court Money Claim Online (MCOL) process is designed to be used without a solicitor. Court fees range from £35 (for claims under £300) to £455 (for claims of £5,000–£10,000). These costs are added to the judgment and recoverable from the debtor if you win.

A County Court Judgment (CCJ) can be enforced through a bailiff (County Court Enforcement), attachment of earnings (if the debtor is an employee), or a charging order against property. A CCJ also affects the debtor's credit rating for six years — which is often enough pressure to secure payment before enforcement begins.

Invoice Chaser handles the whole sequence — free

Generate chase emails, letters before action, and call scripts. Calculate statutory interest automatically. Track payment links. All free, no card required.

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