How long should I wait before chasing an invoice?▾
Send a friendly reminder the day after the payment due date. If your terms are 30 days, chase on day 31. Many businesses send a courtesy reminder 3-5 days before the due date as well. The sooner you chase, the more likely you are to be paid promptly.
What are the Late Payment of Commercial Debts regulations?▾
The Late Payment of Commercial Debts (Interest) Act 1998 gives UK businesses the right to charge interest on late B2B payments at 8% plus the Bank of England base rate. You can also claim a fixed compensation amount: £40 for debts up to £999.99, £70 for debts up to £9,999.99, and £100 for debts of £10,000 or more.
Should I charge interest on late invoices?▾
You have the legal right to charge interest on late B2B payments in the UK. While charging interest can strain relationships, mentioning your right to charge interest in your follow-up emails often motivates faster payment. Include it in your payment terms from the start.
When should I escalate to a pre-legal letter?▾
Consider a pre-legal letter (Letter Before Action) when an invoice is 60+ days overdue and previous reminders have been ignored. This letter must give the debtor 14 days to respond or pay before you begin legal proceedings. It is a formal step and should reference the specific amount owed and consequences of non-payment.
Can I use the Small Claims Court for unpaid invoices?▾
Yes. For debts up to £10,000 in England and Wales, you can use the Small Claims Court via Money Claims Online (MCOL). The fee ranges from £35 to £455 depending on the amount claimed. The process is designed to be used without a solicitor. For debts over £10,000, consider the County Court.
How many reminder emails should I send before taking action?▾
A typical escalation sequence is: Day 1 overdue - friendly reminder; Day 14 - firm follow-up; Day 30 - final notice; Day 45+ - pre-legal Letter Before Action. Keep records of all communications as evidence. Most debts are resolved within the first two reminders.
What payment terms are standard in the UK?▾
Common UK payment terms are 14 days, 30 days, or "upon receipt". Construction industry standard is often 30 days from invoice date (or from end of month). The Prompt Payment Code recommends paying 95% of invoices within 30 days. Government contracts must be paid within 30 days by law.
Should I include bank details in a chaser email?▾
Including bank details in chaser emails makes it easy for clients to pay immediately, reducing one more excuse for delay. However, be aware of email security — consider referencing bank details that are already on the original invoice rather than typing them in full, to reduce fraud risk.
What tone should I use in invoice chaser emails?▾
Start friendly and professional — assume it is an oversight. Escalate the tone only if previous reminders are ignored. Never be rude or threatening, even in final notices. Maintain a professional relationship while being firm about your right to be paid. Document everything in writing.
Can I report a company for persistent late payment?▾
You can report persistent late payers to the Small Business Commissioner (SBC), a government body that helps resolve payment disputes. You can also leave reviews on platforms like Prompt Payment Directory. If the company is a signatory to the Prompt Payment Code, you can report breaches to the Chartered Institute of Credit Management.