Late payment is one of the most stressful parts of working for yourself. The good news is that most unpaid invoices get paid after a polite reminder or two. Here's a step-by-step approach that keeps things friendly for as long as possible.
Step 1: Check your own side first
Before you chase, make sure the invoice was right:
- Did it go to the correct person and email address?
- Was the due date clear, with your bank details on it?
- Is there anything the customer might be unhappy about, like a snag, a missing certificate or a mess left behind?
If there's a genuine problem, fix it first. It's usually the quickest route to being paid.
Step 2: Send a friendly reminder
A few days after the due date, send a short, polite reminder. Assume they forgot. Give the invoice number, the amount, the original due date and a new pay-by date, usually about 7 days away. Include your bank details again.
Our late payment letter has three ready-written stages. The first reminder is the friendly one.
Step 3: Pick up the phone
If there's no reply after a week or so, call. A conversation often uncovers what a letter can't: a cash-flow problem, a dispute about the work, or an invoice stuck with someone else. Make a note of what was said and any date they promise.
Step 4: Send a second reminder and offer a plan
The second reminder says how many days the invoice is overdue and offers to agree a payment plan. Splitting a large bill into weekly or monthly payments is often better than waiting months for nothing. Confirm any plan in writing.
Step 5: The final reminder
If you've still heard nothing, send a final reminder. It's firm and clear, and says you may need to consider other ways to recover the debt if you don't hear back by a set date. Stay polite. Anything you write may be read later by someone else, including a judge.
Your rights with business customers
If your customer is a business, GOV.UK explains that you can usually claim statutory interest on late commercial payments. It's 8% plus the Bank of England base rate for business-to-business transactions, unless your contract sets a different rate. You may also be able to claim fixed debt recovery costs:
- £40 for debts up to £999.99
- £70 for debts from £1,000 to £9,999.99
- £100 for debts of £10,000 or more
These rules apply to business customers, not homeowners. Read the GOV.UK guide to late commercial payments before claiming them.
If they still won't pay
You have a few options:
- Keep negotiating. Even a partial payment now may be better than a long fight.
- Use a debt collection service. Some charge a percentage of what they recover.
- Go to court. GOV.UK explains how to make a court claim for money. Courts expect you to have tried to settle first, so keep copies of every reminder and note of every call. For claims against individuals, there are also steps you're expected to take before going to court, so read the guidance or get advice first.
Prevent it next time
- Take deposits on bigger jobs, especially to cover materials.
- Invoice in stages so you're never owed the whole job at once.
- Send invoices on the day you finish.
- Take payment on the spot for small jobs, then send a receipt.
- Put clear terms on your quotes, including when payment is due.
Ready to make one? Free, no sign-up, and your details stay on your device.
Frequently asked questions
How long should I wait before chasing?
A few days after the due date is normal for a first reminder.
Can I charge interest to a homeowner?
The statutory interest rules on GOV.UK are for business-to-business transactions. For consumers, check your own terms and get advice before adding charges.
Should I keep working for a customer who owes me money?
Be cautious. Many tradespeople pause new work until the account is up to date, and tell the customer politely why.
This guide is general information, not tax or legal advice. Rules change, so check GOV.UK for the latest position.