This is a guide, not legal advice.
The escalation that works
Most late payments are drift, not malice — a clear, consistent sequence clears the majority.
- Friendly reminder (day 31): short and solving-focused. "Hi Sarah, invoice #2847 (£850, due 15 July) doesn't seem to have reached us — could you confirm payment, or let me know if there's an issue?" Log the date you sent it in Get Paid; you may need the evidence later.
- Firm reminder (day 45–50): state the facts. Payment required within 7 days, or you'll add statutory interest and recovery costs under the Late Payment of Commercial Debts (Interest) Act 1998 and pursue it through the courts.
- Final notice (day 60+): the amount plus interest and costs, due by a date, or you file at the County Court.
Your rights under the Late Payment Act
For business clients you can automatically add:
- Statutory interest: 8% plus the Bank of England base rate, running from the due date to the day you're paid.
- Fixed compensation per invoice: £40 under £1,000, £70 for £1,000–£9,999.99, £100 for £10,000+.
- Reasonable recovery costs on top, if you can evidence them.
Worked example: £3,500 invoice, 61 days late, ~12.75% total rate → interest ≈ £73.50, plus £70 compensation = £3,643.50 claimable. Get Paid calculates the interest and compensation for you and drafts the escalating letters.
Businesses vs homeowners
The Act applies in full to businesses. It does not apply to homeowners — with a consumer you can generally only pursue the original invoice amount. That's exactly why domestic work should lean on deposits and staged payments instead.
Prevention beats chasing
- Take a deposit (30–50%) before starting.
- Use stage payments on bigger jobs so the at-risk amount is small.
- Put payment terms in writing on the quote and invoice ("due within 14 days").
- Invoice promptly — the clock only starts when you do. Create a compliant one with the invoice generator.
Money Claim Online — last resort
If chasing fails, file through Money Claim Online (the small-claims route): straightforward, no solicitor needed, fees ~£25–£150 which you can add to the claim, and if they don't respond the court can order payment without a hearing. Use it for undisputed debts where you have the invoice, the agreed terms and proof the work was done. It's not the route for a quality dispute.
Common mistakes
- No payment terms on the paperwork — always state the due date.
- Only phoning — put it in email so there's a record.
- Charging a homeowner interest with no prior agreement — not enforceable.
- Waiting 90 days — the sooner you chase, the more likely you're paid.