How to Chase an Unpaid Invoice as a Tradesperson
You’ve done the work. You’ve sent the invoice. And now you’re waiting.
Days turn into weeks. The customer isn’t responding. And that money sitting in your unpaid invoices is starting to affect your cash flow.
Sound familiar?
Late payments are one of the biggest frustrations for self employed tradespeople in the UK. But most people don’t chase them effectively — either because they don’t want the confrontation or they’re not sure what they’re entitled to do.
Good invoicing software with automatic reminders can prevent a lot of this — see our guide to the best invoicing software for UK tradespeople.
This guide walks you through exactly how to chase an unpaid invoice, step by step, from the first polite reminder all the way through to your legal options if it comes to that.
Before chasing, it’s worth knowing your legal rights on payment timelines — our guide covers how long a tradesperson should wait to get paid.
Step 1 — Send a Friendly Reminder
Before you assume the worst, start with a simple friendly reminder.
Most late payments aren’t deliberate. Customers get busy, invoices get buried in inboxes, and payments genuinely get forgotten.
Send a short, polite message a day or two after the due date:
“Hi [Name], just a quick reminder that invoice [INV-001] for £[amount] was due on [date]. Please let me know if you have any questions or if there’s anything you need from me to process the payment. Thanks.”
Keep it friendly. No accusations. No threats. Just a nudge.
More often than not, this is all it takes.
Step 2 — Follow Up by Phone
If you haven’t heard back within two or three days of your reminder, pick up the phone.
A phone call is harder to ignore than an email and it gives you a chance to understand if there’s a genuine issue — a dispute about the work, a cashflow problem on their end, or simply a lost invoice.
Keep the call professional and calm:
“Hi [Name], I’m just calling about invoice [INV-001]. I sent a reminder earlier this week and wanted to check everything is in order for payment.”
Most customers will either pay up or give you a clear date they’ll pay by. Get any promised payment date confirmed in writing — a follow up text or email after the call is fine.
Step 3 — Send a Formal Overdue Notice
If friendly reminders haven’t worked, it’s time to send a more formal overdue notice.
This doesn’t need to be aggressive — but it does need to make clear that you’re taking this seriously.
Your overdue notice should include:
- The original invoice number and amount
- The original due date
- The number of days overdue
- A new firm deadline for payment — typically 7 days
- A note that you are entitled to charge statutory interest on overdue invoices
- Your payment details again clearly laid out
Under the Late Payment of Commercial Debts Act, if your customer is a business, you are legally entitled to charge 8% above the Bank of England base rate in interest on overdue invoices, plus a fixed debt recovery fee of £40, £70 or £100 depending on the invoice amount.
Even if you don’t intend to charge it, mentioning this in your overdue notice often prompts faster payment.
Step 4 — Use a Debt Collection Letter Template
If your formal notice is ignored, your next step is a formal letter before action.
This is a letter stating that if payment is not received within a set timeframe — usually 7 to 14 days — you will pursue the debt through the courts.
This is a serious step but an important one. Many customers who have ignored emails and calls will take action when they receive a formal letter.
You can find free letter before action templates online, or use a solicitor to send one on your behalf for added weight.
Step 5 — Make a Small Claims Court Claim
If all else fails, the UK Small Claims Court is a straightforward and relatively inexpensive way to recover money owed to you.
For debts up to £10,000 in England and Wales you can make a claim online at gov.uk/make-court-claim-for-money. The process is designed to be used without a solicitor.
Court fees vary depending on the amount owed but are typically modest — and if you win, the court can order the defendant to pay your fees too.
This step tends to get results. Most customers settle before the case ever reaches a hearing once they realise you’re serious.
How to Avoid Late Payments in the First Place
Prevention is always better than the cure. Here’s what the best tradespeople do to minimise late payments:
Always send invoices immediately — the moment a job is done, invoice it. Don’t batch them up at the end of the week.
Set clear payment terms upfront — agree payment terms before you start the job and include them on every invoice.
Ask for a deposit on larger jobs — a 25% to 50% deposit protects you if a customer disappears or disputes the work after completion.
Use invoicing software with automatic reminders — tools like Tradify track all your outstanding invoices and can send automatic payment reminders so you don’t have to chase manually.
Check the customer out first — for large commercial contracts, it’s worth doing a basic credit check or asking for references before starting work.
📄 Related: What Should a Tradesperson Invoice Include?
Your Legal Rights as a UK Tradesperson
It’s worth knowing your rights so you can reference them confidently when chasing payments:
Statutory interest — you can charge 8% above base rate on overdue invoices from other businesses under the Late Payment of Commercial Debts Act 1998.
Debt recovery costs — you can add a fixed recovery fee of £40 for debts under £1,000, £70 for debts between £1,000 and £9,999, and £100 for debts of £10,000 or more.
Right to withhold future work — if a customer owes you money, you are under no obligation to carry out further work for them until the debt is settled.
Small Claims Court — for debts up to £10,000 you can pursue payment through the Small Claims Court without a solicitor.
The Bottom Line
Chasing an unpaid invoice is never fun — but it’s part of running a trade business and you shouldn’t feel awkward about it.
You did the work. You deserve to be paid.
Start politely, escalate calmly, and don’t be afraid to use the legal tools available to you if it comes to that. Most disputes are resolved well before court becomes necessary.
The best way to deal with late payments is to prevent them in the first place — and the right invoicing tools make that significantly easier.
🔧 Best Free Invoice Templates for UK Tradespeople 2026 — get a professional invoice template and start getting paid faster.
💼 How to Invoice as a Sole Trader in the UK — everything you need to know about invoicing when you’re self employed.
⏱️ Related: How Long Should a Tradesperson Wait to Get Paid?
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