So you’ve done the work, sent the invoice, and now… nothing. It’s frustrating, but there are steps you can take when a client has not paid your invoice on time.
Here’s what you’ll learn in this post:
- Legal payment deadlines in the UK
- How to follow up effectively
- What to do if a client ignores you
- Charging interest and late fees
- Taking legal action if needed
Please note: This is general info and doesn’t replace professional legal or financial advice.
The Basics
Sole Traders, Individuals, and Businesses: What’s the Difference?
Sole Traders
These are self-employed individuals who run a business. They are legally considered a business for payment purposes. The 30-day payment rule applies, and you can charge statutory interest and late fees after this period.
Individuals (B2C)
These are personal clients, not running a business. For individuals, the 30-day payment rule doesn’t apply automatically, and you can only charge interest or late fees if your contract clearly states these terms.
Businesses (B2B)
These are companies or organisations. The 30-day payment rule applies unless other terms have been agreed upon, and you can charge statutory interest and late fees once this period has passed.
Why Clients Don’t Pay
There are lots of reasons clients don’t pay on time. Sometimes it’s because of:
- Cash flow issues 💸
- Administrative mix-ups 📂
- Forgetting 🤷♀️
- And sometimes… they’re just dodging it.
Whether you’re working with a business, sole trader, or individual, here’s how to handle it.
The 30 Day Rule
For business clients and sole traders in the UK, unless you’ve agreed to other terms, clients legally have 30 days to pay. That’s 30 days from when they receive the invoice or when you deliver the service – whichever comes later. After that, the payment is overdue. 🚨
For Individual Clients (B2C): The 30-day rule doesn’t apply unless it’s specified in your contract. You must clearly state the payment terms upfront.
Send A Reminder
You’ve probably already done this, but…
Start with a simple, polite reminder:
“Hey [Name], just following up on invoice [number]. It was due on [due date]. Let me know if you need any info to get this paid!”
Sometimes clients just need a nudge, but don’t stop here if they ignore you. Also, double-check the invoice was sent correctly and received.
Make A Phone Call
If they don’t respond to your reminders, pick up the phone. Call your client directly – it’s harder to ignore someone when you’re speaking to them. Stay professional but firm:
“Hi [Name], I’ve followed up on the outstanding invoice and haven’t received payment. Can we discuss when this will be settled?”
When dealing with individuals, this can sometimes speed things up.
Send A Letter
If reminders and phone calls aren’t working, it’s time to get serious. Sending a formal letter or Letter Before Action can help move things forward. Here’s what to include:
- The invoice number and amount due
- The work that was completed
- The payment due date and the overdue amount
- A clear deadline for payment (e.g., 7 days)
- A warning that legal action will be taken if payment isn’t received
Letter Example
“Dear [Client Name],
This letter is to formally notify you that the payment for invoice [number] dated [date], for the amount of [amount], is now overdue. Please arrange payment within the next 7 days to avoid further action, which may include legal proceedings. If you have any queries, please let me know.”
A formal letter shows you mean business without escalating straight to legal action.
Charge Interest
For business clients and sole traders, you can add statutory interest after 30 days – 8% plus the Bank of England base rate. You can also charge recovery costs (up to £100 depending on the amount owed).
For Individual Clients (B2C): You can only charge interest if this is included in your contract. Always make sure your contract clearly defines payment terms and any penalties for late payments.
Set A Final Deadline
If the polite route hasn’t worked, it’s time to be clear:
“If payment for invoice [number] isn’t received by [date], I’ll have to add late fees and take further steps, including legal action.”
Setting a deadline shows professionalism and seriousness. If you don’t follow through on your deadlines, it may hurt future business relationships.
Taking Legal Action
If payment still isn’t coming, you can:
- File a claim through Money Claim Online for debts under £10,000
- Take it to Small Claims Court for larger amounts
- Contact a debt collection agency (they’ll charge a fee, but it’s worth it to get paid)
Legal action can be time-consuming and expensive, so make sure it’s the last resort. It’s important to weigh the time and cost against the value of the invoice.
Protect Yourself
For next time, tighten up your contracts.
Make sure you have:
- Clear payment terms
- Late fees and deadlines
- Deposits or progress payments
- A solid contract is your best protection. 🙌
Get Help
If you’re still unsure or need more support, check out these resources:
These resources are mostly aimed at helping with business-to-business claims, so if you’re working with an individual, double-check the guidance.
Your Stories Matter
Ever had trouble getting paid?
Share your story with us.
What was the outcome? Did you resolve the issue or are you still going through the pain now?
