Unpaid invoices: a UK freelancer’s guide to late payment

1. Verify the work, acceptance and invoice terms

Check the written scope, quote or contract against the work delivered. Gather evidence of delivery and any documented client acceptance. Identify outstanding corrections or a genuine scope dispute; sending another invoice will not resolve those questions.

• Confirm the correct client business or person, invoice number, amount, currency and agreed due date.
• Check that the invoice reached the right accounts contact and included any agreed purchase order or supporting documents.
• Review the payment terms, any agreed interest clause, and the contract’s governing law and jurisdiction.
• Reconcile your payment records, including partial payments, before saying the full amount remains unpaid.

Distinguish an administrative delay, a disputed invoice and a client who cannot pay. Ask what is blocking payment rather than assuming the reason.

2. Send a calm, dated payment reminder

Resend the invoice and state the outstanding amount and original due date. Request payment by a specific date or a reply confirming when it will arrive. Make the request realistic and consistent with your agreement; a new requested date does not rewrite the original terms.

Address the named contact, copy the appropriate accounts contact if needed, and offer to resolve a specific processing issue. Avoid accusations, threats or unverified interest charges.

Reminder email template

Subject: Payment reminder — invoice [invoice number], due [due date]

Hi [client name],

I'm following up on invoice [invoice number] for [agreed work], issued on [invoice date]. The outstanding amount is [amount and currency], and the agreed payment due date was [due date]. I've attached the invoice again for reference.

Please arrange payment using [agreed payment method] by [requested payment date], or reply by [response date] to confirm the payment date. If you believe anything is incorrect or need a document to process payment, please let me know the specific issue so we can address it.

If payment has already been sent, please share the payment reference and date so I can reconcile it.

Thank you,
[your name / business name]
[contact details]
[date sent]

Replace the bracketed placeholders and attach the correct invoice before sending. This template cannot guarantee a reply or payment.

3. Keep a paper trail and record the response

Keep the contract, invoice, delivery evidence, acceptance messages, reminders and payment records together. After a call, send a short written summary of what was agreed, including the payment date and any issue the client raised. Save dated copies rather than relying on memory.

If you agree a payment plan, record instalment amounts, dates and how you will review missed payments. Check the implications before changing terms or waiving charges. Share client information only with people who need it for legitimate advice or collection.

UK late-payment rights: current rules versus proposals

Checked 9 October 2026

Current rights for qualifying business-to-business invoices

For qualifying late commercial payments, statutory interest is generally 8 percentage points above the Bank of England base rate. Entitlement depends on the debt, contract and applicable legal rules; a different contractual interest rate can affect whether statutory interest is available. Do not assume every unpaid invoice qualifies.

Current GOV.UK guidance generally describes business payment terms of 60 days, with longer terms possible where fair to both businesses; public authority terms are generally 30 days. Where no payment date is agreed, the guidance explains when the usual 30-day late-payment clock starts. Qualifying claims may also include fixed debt-recovery compensation, depending on the debt amount, and certain further reasonable recovery costs.

Check the GOV.UK late-commercial-payment guidance for eligibility, timing, interest and recovery costs before adding charges. These B2B rights must not be applied to consumer invoices. Verify your contract and jurisdiction; this guide is general information, not jurisdiction-specific legal advice.

Commercial Payments Bill: proposals, not law

The Commercial Payments Bill is still a Bill, not law. The official UK Parliament bill status lists its third reading in the House of Lords as scheduled for 20 October 2026. A scheduled stage is not enactment or a commencement date.

The proposed reforms include a 60-day maximum for large businesses paying smaller suppliers, subject to the Bill’s scope and exemptions, mandatory statutory interest and stronger Small Business Commissioner powers. These are proposals only: they may change during Parliament’s consideration and do not create rights you can rely on today. Use the current guidance for an existing invoice, and recheck the official record for developments.

4. Escalate unpaid invoices proportionately

If a reminder and follow-up produce no workable response, send a measured final notice. Identify the invoice, outstanding amount, previous contact dates and a reasonable deadline for payment or a substantive response. Explain the next step you are genuinely considering; do not threaten action you cannot or will not take.

A final reminder is not automatically a legally sufficient letter before action. Before formal proceedings, verify the applicable pre-action requirements, correct debtor and jurisdiction, and obtain appropriate advice where needed. If the invoice is disputed, address the evidence and consider whether negotiation or mediation is more proportionate.

Start with the Small Business Commissioner’s unpaid-invoice help. Its guidance can help you assess next steps; complaint eligibility and the support available depend on the circumstances. It is not a promise that the Commissioner can recover every invoice. A solicitor or suitable business adviser can help assess a disputed or complex debt.

5. Weigh the cost of debt collection for unpaid invoices

Compare the amount outstanding with the time, fees and likely outcome of each option. A collection agency, legal claim or judgment does not guarantee recovery, especially if the client has no ability to pay. Establish whether the debtor is still trading and seek advice if insolvency is involved.

• Ask a collection provider about upfront fees, commission, unsuccessful-case charges and what service is included.
• Allow for court fees, advice, possible enforcement costs and time away from paid work; do not assume all costs are recoverable.
• Compare a documented settlement or payment plan with the likely net return from further action.

Choose the next step based on evidence and realistic recovery prospects, not just frustration or the face value of the invoice.

Prevent late payment on the next project

Agree the scope, exclusions, price, payment method and clear due dates in writing before work begins. Name the person who can approve delivery and the contact who processes invoices. Document acceptance and changes as the work progresses.

For longer projects, agree milestones or progress invoicing tied to clearly defined work and review points rather than leaving the entire fee until the end. Choose a realistic payment method that suits the client and the project, and confirm any purchasing requirements before issuing the first invoice. None of these steps guarantees collection, but they make expectations and evidence clearer.