Start the day after it's due, not three weeks later
Direct Line's survey of 500 UK tradespeople, published in January 2026, found 68% chasing at least one late payment and an average of £2,023 outstanding per person. Over half said they were seeing more late payments than the year before. The common thread in the ones that go bad is the same: the first reminder went out late, or never.
The day after the due date is the right time for the first message. It's not rude; it's the date they agreed to. Most late payments at this point are forgetfulness, and a friendly reminder with the amount, the reference and your bank details clears them.
Hi Alice, hope the boiler's behaving. Just a reminder that invoice INV-134 for £342.00 was due yesterday. Bank details are on the invoice, reference INV-134. Thanks, Dean.
Before you chase, check three things
A surprising number of 'late' invoices were never received, or can't be paid as sent. Thirty seconds here saves an awkward message.
- It went to the right place. The email they actually read, or their mobile, not the landline they gave you for the job.
- It has what they need to pay: your bank details, a reference, the amount, and the due date.
- It's for what they expected. If the job grew and the bill grew with it, the first chase is the moment they'll say so.
Step two: a week on, firmer and with a phone call
If the first reminder gets nothing, give it a week and send a second that's shorter and plainer. Then ring. A two-minute call clears more invoices than any letter, because it's hard to ignore a person. Keep it friendly: "Just checking you'd seen the invoice, is there a problem with it?" gives them an easy way to say they'd forgotten, or to tell you what's wrong.
Write down what they said and when. If it ends up in court, the notes matter.
Hi Alice, I've not had anything back on invoice INV-134 for £342.00, now a week overdue. Could you let me know when it'll be paid, or ring me if there's a problem with it? Dean, DW Plumbing.
Step three: the final notice, naming what happens next
Two to three weeks overdue, with two reminders and a call behind you, send a final notice. Say plainly that if it isn't paid by a date a week away you'll add the interest you're entitled to and start a claim. Don't threaten anything you won't do. Most people pay at this point; the ones who don't were never going to without the next step.
Final reminder: invoice INV-134 for £342.00 is now 21 days overdue. If it isn't paid by Friday 20 November I'll have to add statutory interest and start a claim to recover it. I'd much rather not. Dean, DW Plumbing.
Interest and compensation: who you can charge
If your customer is a business (a landlord's agent, a builder, a shop), the Late Payment of Commercial Debts (Interest) Act lets you add interest at 8% a year above the Bank of England base rate, plus a fixed compensation sum per invoice that depends on the amount (£40, £70 or £100 at the time of writing; check gov.uk for the current figures). You don't need it in your terms; it's the law.
If your customer is a private individual, you can only charge interest if your terms said so before the work started, and the rate has to be fair. This is one reason to have a line about late payment on every quote.
The letter before action
Before a court claim you need to send a formal letter before action. Where you're a business claiming from an individual, the Pre-Action Protocol for Debt Claims applies: the letter has to set out what's owed and how it's made up, include the court's reply form and information sheet, and give them 30 days to respond. Templates are on gov.uk and it costs you a stamp.
A good many invoices get paid at this stage without a claim ever being filed. The letter is the point at which it stops being a nag and starts being a process.
Small claims
For an unpaid invoice under £10,000 in England and Wales you can claim online through Money Claim Online. There's a court fee that scales with the amount, which you add to the claim. Most trade invoice claims are undefended, and a judgment in your favour can be enforced.
Scotland and Northern Ireland have their own routes (Simple Procedure and the Small Claims Court). The steps before it, the reminders and the letter, are the same everywhere.
Stopping it happening again
The invoices that don't need chasing are the ones that went out right.
- Take a deposit on any job where you're buying materials. Say so on the quote.
- Invoice the day the job is done, while they're pleased with it.
- Bank details and a reference on every invoice, every time.
- A line about payment terms and late payment on every quote, agreed before you start.
- A reminder on the day after it's due, every time, not just for the ones you're worried about.