Prevention beats chasing
Most late payments start with a vague invoice. Before you build a chasing process, fix the invoice:
- Clear due date — "Payment due by [date]", not "Payment terms: 14 days".
- One-click payment link — invoices with a pay-now button get paid nearly twice as fast on average.
- Bank details + reference — make it impossible to get the reference wrong.
- Late payment clause — see the legal section below. Put it on every invoice, not just the chase letter.
For the full invoice anatomy, see our quote and invoice structure guide.
The 4-step chase schedule
1. Day 1 after due date — friendly nudge (email or SMS)
Subject: Invoice [number] — quick reminder
Hi [name], hope you're well. Just a quick reminder that invoice [number] for £[amount] was due yesterday — payment link here: [link]. Let me know if you need a copy resent. Cheers, [you].
2. Day 7 — firmer reminder
Hi [name], invoice [number] for £[amount] is now 7 days overdue. Could you confirm a payment date this week? Happy to take a card or bank transfer — pay link: [link].
3. Day 14 — statutory interest notice
Hi [name], invoice [number] is now 14 days overdue. Under the Late Payment of Commercial Debts (Interest) Act 1998, I'm entitled to add statutory interest of 8% plus the Bank of England base rate, plus a fixed late fee. I'd much rather not — please can you settle by [date]?
4. Day 30 — Letter Before Action
A formal letter giving the customer 14 days to pay or face court action via Money Claim Online. Keep it factual: invoice number, amount, dates of work, dates of previous reminders, total claimed including interest and fees.
What the law actually entitles you to
For B2B work in the UK (one business to another), the Late Payment of Commercial Debts (Interest) Act 1998 automatically gives you:
- Statutory interest of 8% above the Bank of England base rate.
- A fixed compensation fee: £40 for debts under £1,000, £70 for £1,000–£9,999.99, £100 for £10,000+.
- Reasonable debt recovery costs if the fixed fee doesn't cover them.
You don't need a contract clause to claim these — the law applies by default. But putting it on your invoice and quote makes the threat real and rarely needs to be used.
For consumer (B2C) work, you can't rely on the same Act, but you can charge interest if your terms (on the quote they accepted) say so. Reasonable rates are 4–8%.
When the customer says they "can't afford it"
- Offer a written payment plan — three equal monthly instalments by standing order.
- Get it signed (email confirmation is fine).
- Continue interest from the original due date if they default.
- Never agree to "I'll pay when the next job pays me" without a date.
Escalation: Money Claim Online
For undisputed debts under £100,000, MoneyClaim Online is the small-claims route. Fees start at £35 for a £300 claim and scale with the amount. Most customers pay within the 14-day Letter Before Action window once they realise you'll actually file — but be ready to follow through.
Automate the chasing so you don't have to
Doing this manually for every overdue invoice is a part-time job in itself. Job Snapper automatically sends the day-1, day-7 and day-14 reminders in your own wording, adds a one-tap payment link, and tells you the moment the customer opens the email — so you only ever pick up the phone for the genuinely stubborn ones.
More questions on getting paid? Check the tradespeople FAQ.
This guide is general information, not legal advice. Speak to a solicitor for disputes over significant sums.