A letter that
changes the answer.

A late payment letter states the invoice, the amount, how overdue it is, and what happens next. For business-to-business debts you have a statutory right to interest at the Bank of England base rate plus eight percent, plus a fixed sum for recovery costs.

General guidance for UK businesses, not legal or tax advice. Requirements change — check gov.uk, or ask your accountant, before relying on it.

LAST REVIEWED 27 AUGUST 2026 · BIZZLE

What has to be on it?

FieldRequiredWhy
The invoice number and dateYesSpecific, so there is no ambiguity about which invoice you mean.
The amount outstandingYesAnd whether anything has been paid against it.
The date it fell due, and days overdueYesA number of days is more uncomfortable to read than 'overdue', which is the point.
A direct questionYesWhen will this be paid? Not whether. A question that can be answered with silence usually is.
How to payYesRepeat the details and the payment link. Never make someone hunt for the original email to pay you.
Your statutory rightsRecommendedOne calm sentence noting that statutory interest and recovery costs apply to overdue commercial debts. State it, do not threaten with it.
What happens next, and whenRecommendedOnly in the later letters, and only if you mean it. A deadline you do not act on teaches them the next one is empty too.

The escalation that works

  1. 1

    A few days before due

    Friendly reminder. Most late payment is a forgotten inbox rather than a refusal, and this catches it before it becomes late at all.

  2. 2

    On the due date

    Neutral and factual. Establishes that the date meant something.

  3. 3

    One week after

    Firmer, with the days overdue and a direct question about when payment will be made.

  4. 4

    Two to three weeks after

    Formal. Note the statutory interest position, calmly. This is where the tone of the conversation usually changes.

  5. 5

    Letter before action

    Sets out the debt, a deadline and what you will do next. Many disputes end here, because it is the point at which it becomes cheaper to pay.

What you can actually charge

Under the Late Payment of Commercial Debts legislation, business-to-business debts carry a right to statutory interest at the Bank of England base rate plus eight percent, plus a fixed recovery sum that rises with the size of the debt. Reasonable additional recovery costs can be claimed in some circumstances.

Consumer debts are different. Any interest there has to be a fair term of your contract, so the reminders should be about payment rather than penalties.

Most people never charge it. The value is that the right exists and that your customer knows you know.

COMMON QUESTIONS

Questions people ask.

Will chasing lose me the customer?

Occasionally, and usually one you are better off without. Polite, consistent chasing is normal commercial behaviour and businesses that pay reliably are not offended by it.

When should I stop working for them?

When an invoice is materially overdue and unexplained. Continuing to deliver for someone who has not paid is how a small debt becomes a large one.

Is small claims worth it?

For modest debts it is designed to be used without a solicitor, and the fee is recoverable if you win. Weigh the time, not just the money.

Should I send it by email or by post?

Email for the reminders, because speed matters more than ceremony. The letter before action is worth sending by post as well, with proof of posting — if it ends up in court you want to show it was received, not that it left your outbox.

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