How to Chase Late Payment from a Customer in the UK
A step-by-step guide to recovering overdue invoices from UK business customers — without damaging the relationship or going to court.
Phone before email
Ring on the due date. A brief, professional call recovers the majority of overdue invoices. Email is easy to ignore; a phone call creates accountability. Script: "I'm calling to check our invoice [number] for £[amount] is approved for payment on [date]."
Send a formal late payment letter
After 7 days overdue, send a formal letter (email + post) citing the Late Payment of Commercial Debts Act 1998. You are legally entitled to charge 8% above base rate interest and a fixed recovery fee (£40 for debts under £1,000; £70 for £1,000-£9,999; £100 for £10,000+).
Letter before action (LBA)
If payment is still outstanding after 14 days of the formal letter, send an LBA: "Unless payment is received by [date], we will commence legal proceedings without further notice." Many debts are paid at this stage.
Small claims court
For debts up to £10,000, use MCOL (Money Claim Online) at gov.uk. Filing fee: 5% of debt (£25-455). Court enforcement if judgment obtained but unpaid.