How to Chase an Unpaid Invoice as a Tradesperson

Follow a 5-step escalation: (1) send a polite reminder by email or text; (2) follow up by phone if no response within 2–3 days; (3) send a formal overdue notice with a firm 7-day deadline and mention of statutory interest; (4) send a letter before action stating you will pursue the debt through courts; (5) make a Small Claims Court claim online at gov.uk for debts up to £10,000. Most disputes resolve at step 1 or 2 – very few get to court. The key is to escalate calmly and consistently rather than letting it drift.

Yes – if your customer is a business, the Late Payment of Commercial Debts Act 1998 entitles you to charge 8% above the Bank of England base rate on overdue invoices, plus a fixed recovery fee (£40 for debts under £1,000, £70 for £1,000–£9,999, £100 for £10,000+). For private domestic customers the position is less clear-cut – you can still include a late payment clause in your terms and conditions, but statutory interest under the Act only applies automatically to business-to-business debts. Mentioning the possibility of interest in your formal overdue notice often prompts faster payment regardless.

If a customer explicitly refuses to pay rather than just ignoring your invoices, send a letter before action stating that you will pursue the debt through the courts if payment is not received within 7–14 days. This often triggers payment even from customers who were previously unresponsive. If it doesn’t, make a Small Claims Court claim online at gov.uk for debts up to £10,000 – the process is straightforward, doesn’t require a solicitor, and the court can order the customer to pay your court fees too if you win. Most customers settle before the case reaches a hearing.

Make an online claim at gov.uk/make-court-claim-for-money. For debts up to £10,000 in England and Wales, no solicitor is needed. You’ll need: the customer’s name and address, the invoice amount and date, and evidence of the debt (your invoice, any written agreement or quote, and records of your attempts to resolve it). Court fees range from £35 to £455 depending on the claim amount – and if you win, the court can order the defendant to reimburse these. Most defendants settle once they receive the court claim form, before the case ever reaches a hearing.

The most effective preventions: invoice immediately when a job is complete rather than batching weekly; include clear payment terms on every invoice with a specific due date; ask for a deposit of 25–50% on larger jobs before starting; use job management software with automatic payment reminders so chasing happens without you having to remember; and for large commercial contracts, consider a basic credit check or references before starting work. Most tradespeople who have persistent late payment problems are invoicing late and not setting terms upfront – fixing these two habits reduces late payments significantly.