Key takeaways
- Chase an unpaid invoice in stages: a friendly reminder on the due date, a firmer email at 7 days, a phone call at 14 days and a final demand at about 30 days.
- If no payment date was agreed, a business invoice is late 30 days after the customer receives it or you deliver, whichever is later.
- For business debts that fall late between 1 July and 31 December 2026, statutory interest is 11.75% a year, which is 8% plus the 3.75% Bank Rate on 30 June 2026.
- You can add fixed compensation of £40, £70 or £100 per late payment, depending on the size of the debt.
- If the customer is an individual or sole trader, the Pre-Action Protocol for Debt Claims expects a letter of claim and 30 days to reply before you go to court.
- Court fees for a money claim start at £35 for claims up to £300 and are 5% of the claim between £10,000.01 and £200,000.
- A statutory demand gives the debtor 21 days to pay or agree terms, but GOV.UK says there may be faster ways to recover smaller debts.
To chase an unpaid invoice, send a polite reminder on the due date, a firmer email after 7 days, phone at 14 days and send a final demand at about 30 days that adds statutory interest and compensation. If that fails, send a formal letter before claim, then make a court claim. Most invoices are paid at the first or second step, so keep early messages friendly.
When is an invoice overdue?
An invoice is overdue the day after its agreed payment date. If you agreed no date, GOV.UK says a business payment is late 30 days after the later of: the customer receiving the invoice, or you delivering the goods or service. Agreed terms should usually be within 60 days between businesses, and 30 days for public authorities.
First check the invoice reached the right person. See our guides to payment terms and invoice number rules.
The chasing timeline
This timeline works for most business-to-business invoices on 30-day terms.
| When | Action | Tone |
|---|---|---|
| 3 days before due | Courtesy reminder | Friendly |
| Due date | Payment due today email | Friendly |
| 7 days late | Overdue reminder | Polite, firm |
| 14 days late | Phone call, then email summary | Direct |
| 30 days late | Final demand with interest | Formal |
| 44 days late | Letter before claim | Formal |
| After reply period | Court claim or debt collection | Legal |
Keep a log of every email, call and promise to pay. You will need it if the debt goes to court.
Email templates
Copy and adapt these. Keep each email short and attach the invoice every time.
1. Due date reminder
Subject: Invoice [number] due today
Hi [name], a quick reminder that invoice [number] for £[amount] is due today. I have attached a copy. Bank details are on the invoice. Thanks, [your name]
2. Seven days overdue
Subject: Invoice [number] now 7 days overdue
Hi [name], invoice [number] for £[amount] was due on [date] and is still unpaid. Please let me know when payment will be made, or if there is a problem with the invoice. Thanks, [your name]
3. After the phone call (14 days)
Subject: Invoice [number]: payment by [date]
Hi [name], thanks for speaking to me today. As agreed, you will pay £[amount] by [date]. If I have not received it by then, I will need to add statutory interest and compensation. Regards, [your name]
4. Final demand (30 days)
Subject: Final demand: invoice [number]
Dear [name], invoice [number] for £[amount] is now [x] days overdue. Under the Late Payment of Commercial Debts (Interest) Act 1998 we are adding statutory interest of 11.75% a year and fixed compensation of £[40/70/100]. Please pay £[new total] within 7 days. If we do not receive payment we will start legal action without further notice. Yours sincerely, [your name]
Adding interest and compensation
You can add statutory interest of 8% plus the Bank of England base rate on a late business debt, unless your contract sets a different rate. For debts falling late between 1 July and 31 December 2026 the rate is 11.75%, because Bank Rate was 3.75% on 30 June 2026. The Bank of England raised it to 4% on 5 November 2026, which affects the rate from 1 January 2027 only.
You can also add a fixed compensation sum once for each payment: £40 for debts up to £999.99, £70 for £1,000 to £9,999.99 and £100 for £10,000 or more. GOV.UK says to send a new invoice showing the extra amounts. Use our late payment interest calculator, and read late payment interest and compensation for the full rules.
These rights do not apply to consumers.
Sending a letter before claim
A letter before claim is the formal last warning before court. It should set out the debt, the invoices, the interest claimed and a deadline.
- If your customer is an individual, including a sole trader, follow the Pre-Action Protocol for Debt Claims, published on the Ministry of Justice protocols page. It expects a letter of claim with a reply form and information sheet, and 30 days for the debtor to reply.
- If your customer is a company, the protocol does not strictly apply, but courts still expect a clear letter before action. Allowing 14 days is common practice.
Going to court or using a statutory demand
You can apply to a county court online or by post. The court may offer free mediation, depending on the amount. Court fees depend on the claim:
| Claim amount | Court fee |
|---|---|
| Up to £300 | £35 |
| £1,000.01 to £1,500 | £80 |
| £3,000.01 to £5,000 | £205 |
| £5,000.01 to £10,000 | £455 |
| £10,000.01 to £200,000 | 5% of the claim |
A statutory demand gives the debtor 21 days to pay or reach an agreement, and can lead to winding up or bankruptcy. GOV.UK warns there may be faster ways to recover smaller debts, and debts over 6 years old usually cannot be claimed this way. Take legal advice first.
What to do now
- Put payment terms and your right to statutory interest on every invoice.
- Set calendar reminders for each stage of the timeline.
- Contact the Small Business Commissioner if a larger customer is paying late.
- Follow the Commercial Payments Bill, which would make statutory interest mandatory.
Frequently asked questions
How soon should I chase an unpaid invoice?
Send a reminder on the due date and a firmer one 7 days later. Early, polite contact gets most invoices paid.
Can I charge interest on a late invoice?
Yes, on business debts. Statutory interest is 8% plus Bank Rate, which is 11.75% for debts falling late between 1 July and 31 December 2026, unless your contract sets its own rate.
How much compensation can I add to an overdue invoice?
£40 for debts up to £999.99, £70 for £1,000 to £9,999.99 and £100 for £10,000 or more. You can charge it once per payment.
How long should a letter before claim give the customer?
If the customer is an individual or sole trader, the Pre-Action Protocol for Debt Claims expects 30 days. For companies, 14 days is common.
How much does it cost to take a customer to court?
Court fees start at £35 for claims up to £300 and are 5% of claims between £10,000.01 and £200,000.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.
- Late commercial payments: charging interest and debt recovery (GOV.UK)
- Claim debt recovery costs on late payments (GOV.UK)
- Make a court claim for money: fees (GOV.UK)
- Pre-action protocols, including Debt Claims (Ministry of Justice)
- Make and serve a statutory demand (GOV.UK)
- Official Bank Rate history (Bank of England)