Free playbook

The Late Payment Playbook

The exact ladder for chasing an unpaid invoice in the UK: what to send, when to send it, and when to add statutory interest. Written for small business owners who hate doing this. The whole ladder is on this page; leave your email if you want it as a copy to keep.

The ladder

Chase on a fixed rhythm, not when you remember.

Most unpaid invoices are not disputes. They are drift: your invoice sat in an inbox, then everyone moved on. The fix is a ladder you climb on fixed days, where each rung is slightly firmer than the last. You stop deciding whether to chase, because the calendar decides.

WhenWhat you sendTone
Due date −3 daysA short heads-up that the invoice falls due this week, with the invoice attached againFriendly. You are being helpful, not chasing
Day 1 overduePolite reminder. Assume cock-up, not conspiracy: "I suspect this slipped through"Light, no pressure
Day 7Firm chase. Name the amount, the invoice number and the original due date, and ask for a payment dateDirect and professional
Day 14Escalation. Mention that statutory interest and compensation apply to late commercial payments, without threatening anyoneFirm, still polite
Day 30Final notice. State the total including interest, and a 7-day deadline before formal recoveryFormal
Day 45+Letter before action, then Money Claim Online if it stays unpaidLegal, by the book

The day-7 template, word for word.

This is the rung most owners skip, because it feels confrontational. It is not. It is the one that gets most invoices paid.

Subject: Invoice [number], £[amount], now 7 days overdue

Hi [first name],

Following up on invoice [number] for £[amount], which was due on [date] and is now a week overdue. I have attached it again to save you digging.

Could you let me know when payment will be made? If it has already been sent, ignore me and thank you.

If there is a problem with the invoice or with paying right now, tell me and we will sort something out. Silence is the only thing I cannot work with.

Thanks,
[Your name]

Statutory interest: the lever most owners never pull.

If another business pays you late, the Late Payment of Commercial Debts (Interest) Act 1998 gives you the right to charge statutory interest at 8% a year plus the Bank of England base rate, without needing it in your contract. As of August 2026 the base rate is 3.75%, which makes the statutory rate 11.75% a year.

You can also claim a fixed compensation sum per late invoice:

  • Debts under £1,000: £40
  • Debts from £1,000 to £9,999.99: £70
  • Debts of £10,000 or more: £100

You do not have to charge it. Mentioning that you are entitled to, around day 14, is often enough. The full guide has a worked example of the calculation.

Take it with you

Want the playbook to keep?

Leave your email and I will send you the full playbook, with every template on the ladder. One email from me. No list, nothing automated.

One email from me. No list, nothing automated.

Or stop climbing the ladder by hand.

Harness by Heoka watches your FreeAgent account, drafts every rung of this ladder overnight in your tone, and sends from your own email address once you approve it each morning. It is in pilot now, ten founding places at £10.

See how Harness works