Guides · Updated 2026-10-15
How to chase a late payment: a UK guide for trades
Most late payers aren't refusing to pay. The invoice got lost, or they're juggling cash flow, or nobody chased. A clear process, started on time, gets most invoices paid without a row. This guide sets out when a payment is legally late, what you can add to a business customer's bill, and what happens if it ends up in court. Figures are from GOV.UK and the Bank of England, checked 15 October 2026. Court rules here are for England and Wales.
When a payment is late
If you agreed a payment date, the payment is late the day after it. Between businesses, agreed terms should usually be no more than 60 days, or 30 days for public authorities. If you didn't agree a date, payment is late 30 days after the customer gets the invoice or you deliver the work, whichever is later (GOV.UK).
Put your payment terms on the quote and the invoice, so there's no argument about the due date later.
A simple chasing routine
This isn't a legal requirement, just a sequence that tends to work:
- Before it's due: send the invoice promptly with the due date and how to pay. A payment link helps.
- The day after it's due: a short, friendly reminder. Assume it's been missed.
- A week late: a firmer email or call. Ask when they'll pay, and note the answer.
- Two to three weeks late: a final written reminder saying what you'll add (for business customers) and what you'll do next.
- After that: decide whether to make a court claim, or write it off.
Keep every message polite and factual; if it goes to court, a judge may read them. Invoicing apps can send the early reminders for you: see the invoicing tools and Tradify vs Jobber. There's also a ready-made final notice prompt.
Business customers: statutory interest and a fixed sum
If another business pays you late, you can claim statutory interest of 8% a year plus the Bank of England base rate (GOV.UK). The base rate used is the one in force on 30 June (for interest that starts running from 1 July to 31 December) or 31 December (for interest starting from 1 January to 30 June) (legislation.gov.uk). Bank Rate has been 3.75% since 18 December 2025 (Bank of England), so debts that went late in 2026 attract 11.75% a year.
You can't claim statutory interest if your contract sets a different interest rate. To claim it, send a new invoice that adds the interest.
On top of interest, you can charge a fixed sum once per payment for the cost of recovering it (GOV.UK):
| Amount of debt | Fixed sum |
|---|---|
| Up to £999.99 | £40 |
| £1,000 to £9,999.99 | £70 |
| £10,000 or more | £100 |
Work out both with the free late payment interest calculator. For example, £2,400 paid 60 days late in 2026 comes to £46.36 of interest plus the £70 fixed sum.
Homeowners and other consumers
The statutory interest above is for business-to-business debts. For a homeowner, what you can add depends on your terms. If you make a court claim, GOV.UK says the interest rate for debts other than late commercial payments is usually 8% a year, worked out daily (GOV.UK).
If it goes to court
You can claim online or by post in the county court. The fee depends on the amount claimed, including interest (GOV.UK):
| Claim amount | Court fee |
|---|---|
| Up to £300 | £35 |
| £300.01 to £500 | £50 |
| £500.01 to £1,000 | £70 |
| £1,000.01 to £1,500 | £80 |
| £1,500.01 to £3,000 | £115 |
| £3,000.01 to £5,000 | £205 |
| £5,000.01 to £10,000 | £455 |
| £10,000.01 to £200,000 | 5% of the claim |
If your claim is £10,000 or less and the customer disputes it, you'll be told to attend mediation, which the court organises for free (GOV.UK). Scotland and Northern Ireland have different processes.
Prevention is easier than chasing: see payment terms for trades for deposits, stage payments and due dates.
For more message templates, see ChatGPT prompts for tradespeople.
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FAQ
When is an invoice legally late?
The day after the agreed payment date. With no agreed date, 30 days after the customer receives the invoice or you finish the work, whichever is later.
How much interest can I charge on a late invoice?
For business customers, 8% plus the Bank of England base rate on the reference date: 11.75% a year for debts that went late in 2026 (checked 15 October 2026), plus a fixed sum of £40, £70 or £100.
Can I charge a homeowner late payment interest?
Not under the commercial late payment rules. Rely on your terms; if you go to court, the rate for other debts is usually 8% a year.
How much does a small claim cost?
From £35 for claims up to £300, rising to £455 for £5,000.01 to £10,000 (England and Wales, checked 15 October 2026).
Is this legal advice?
No. It summarises GOV.UK guidance. For a large or disputed debt, get advice.