What to Do When a Freelance Invoice Isn't Paid in the UK

Late payments are one of the most stressful parts of freelancing. The good news: UK law is firmly on your side. Here's a step-by-step guide to recovering what you're owed.

Step 1: Send a Polite Reminder

Before assuming the worst, send a friendly reminder. Invoices get lost in inboxes. A brief, professional email referencing the invoice number and due date resolves the majority of late payments without any friction.

Example:

Hi [Name], just a quick note — invoice #1042 for £[amount] was due on [date]. Please let me know if you have any questions. Happy to resend the PDF if needed.

Step 2: Follow Up More Firmly

If there's no response within 5–7 days, follow up again. Be polite but direct. Reference the invoice, the amount, and the new date you expect payment.

At this stage, it's worth checking:

Is the invoice addressed correctly?
Are the payment details (sort code, account number) on the invoice correct?
Has the client confirmed receipt?

Step 3: Charge Statutory Interest

Under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses and sole traders can charge statutory interest on overdue B2B invoices:

8% above the Bank of England base rate per year
Interest starts accruing 30 days after payment was due (or from the date agreed in your contract)
You can also charge a fixed debt recovery fee of £40, £70, or £100 depending on the invoice amount

Mention this in your follow-up email to signal you know your rights.

Step 4: Send a Formal Letter Before Action

A Letter Before Action (LBA) is a formal notice that you intend to pursue the debt through the courts if it's not paid. This often motivates payment.

Your LBA should include:

The invoice number and amount
The original due date
Any statutory interest accrued
A final deadline (typically 7–14 days)
A statement that you will take legal action if payment isn't received

Keep a copy of everything.

Step 5: Use the Small Claims Court

If the debt is under £10,000, you can use the Money Claim Online (MCOL) service — the UK's online small claims process. It costs from £35 and you can do it without a solicitor.

Visit: moneyclaim.gov.uk

The court can issue a County Court Judgment (CCJ) against the client, which affects their credit rating and can be enforced by bailiffs if needed.

Step 6: Consider a Debt Recovery Agency

For amounts over £10,000, or if you'd prefer not to handle the process yourself, a debt recovery agency or solicitor can pursue the debt on your behalf — often on a "no win, no fee" basis.

Preventing Late Payments in Future

The best cure is prevention:

State clear payment terms on every invoice — net 14 or net 30 is standard for UK freelancers
Chase early — don't wait weeks before following up
Use invoicing software that sends automatic reminders — tools like Billdrop can automate payment reminders so you don't have to chase manually
Get a deposit upfront for larger projects — 25–50% is common
Use a written contract that references your payment terms

UK law protects freelancers from non-payment. Know your rights, act promptly, and don't be afraid to escalate. Most clients pay once they realise you're serious.

Create professional invoices with clear payment terms using Billdrop — free, no account needed.