How to chase an unpaid invoice: a UK guide

You completed the work and sent the invoice. The due date has passed, but the money has not arrived. The best next move is usually a clear, documented sequence rather than an angry message or silence.

Keep the tone professional, keep evidence of every contact and make the next action obvious.

Before you chase

Check the basics first:

• the invoice went to the right person and address

• the due date has passed

• the bank details are correct

• the customer has not raised a genuine dispute

• the work, approval and any variations are documented

If there is a mistake, correct it quickly. If there is a dispute, deal with the point they have raised instead of sending a standard reminder.

Step 1: a polite reminder

Send a short message on or just after the due date. Include the invoice number, amount, original due date and an easy way to pay.

Hi Sam, a quick reminder that invoice INV-104 for £640 was due on 8 September. Could you let me know when payment will be made? I have attached the invoice again for convenience. Thanks, Chris.

For many customers, that is enough. The invoice may simply have been missed.

Step 2: a firmer written reminder

If there is no payment or useful reply, send a firmer message with a specific date for payment. Keep it factual.

Invoice INV-104 for £640 remains unpaid. Please arrange payment by 18 September or contact me today if there is a problem with the invoice.

Save the message with the job record. TradePilot can show which invoices need attention and provides ready-written reminder options, but you choose what to send and when.

Step 3: a formal letter before action

If informal reminders fail, you may need a formal letter setting out the debt, the deadline and the action you are considering. The correct wording and timescale can depend on who owes the money and where in the UK the claim would be made.

The Pre-Action Protocol for Debt Claims applies in England and Wales when a business, including a sole trader, claims a debt from an individual, including a sole trader. Other claims and jurisdictions can follow different rules. Take legal advice if you are unsure.

Our free late-payment letter tool provides polite, firmer and final wording that you can check and adapt. It is not legal advice.

Interest and recovery costs for business debts

For qualifying business-to-business debts, statutory interest is normally 8 percentage points above the Bank of England base rate. Fixed compensation can also be available: £40 for debts below £1,000, £70 for debts from £1,000 to £9,999.99 and £100 for debts of £10,000 or more.

These commercial-debt rules do not automatically apply to a domestic consumer. A contract with a different interest remedy can also change the position. Check the current rules before adding interest or recovery charges, and send the required supporting invoice or notice.

When to pause and get advice

Get advice before escalating if:

• the customer disputes the work or price

• the evidence is incomplete

• the customer may be insolvent

• the debt is large enough to affect your business

• you are unsure which legal process or jurisdiction applies

A court claim costs time and money. A clear payment plan can sometimes recover the debt faster, but record any agreement in writing.

Make the next invoice easier to collect

Use clear payment terms, put the due date on the invoice, agree changes before doing extra work and keep the customer, quote, job and invoice connected. None of that guarantees prompt payment, but it removes avoidable arguments.

Written by Chris, founder of TradePilot. This guide is general information, not legal advice. Read the official GOV.UK commercial late-payment guidance and the Civil Procedure Rules protocols.