A customer ignoring your invoice is one of the most frustrating things about running a trade business. Here's exactly what to do, step by step — from the first reminder all the way to small claims court if it comes to that.
81% of UK tradespeople are currently chasing late payments, with the average tradesperson owed £6,210 across seven outstanding invoices. If a customer won't pay, you're not alone — and you have more legal tools at your disposal than most people realise.
This guide covers the exact steps to take, in the right order, whether you're dealing with a customer who's ignoring you, disputing the work, or simply dragging their feet.
New in 2026: The UK government announced new measures on 24 March 2026 requiring large companies to pay smaller suppliers within 60 days, with all late commercial payments automatically attracting statutory interest at 8% above the Bank of England base rate. This strengthens your position significantly if you're chasing a business customer.
Before escalating, give the customer the benefit of the doubt once. Invoices genuinely do get lost, payment runs get missed, and busy people forget. A polite reminder email or call costs nothing and often resolves things immediately.
Keep it professional: state the invoice number, the amount owed, the original due date, and ask them to confirm when payment will be made. Don't apologise for chasing — you're entitled to be paid.
If you get no response within 3-4 working days, move to the next step. Don't keep sending polite reminders indefinitely — this signals that non-payment has no consequences.
A formal letter before action is a significant escalation from a reminder email — and it works. The tone shift alone, from informal to legal, prompts payment in the majority of cases without going any further.
Your letter should include the original invoice amount, the date payment was due, a clear 7-day deadline for payment, and a reference to the statutory interest you're entitled to claim under the Late Payment of Commercial Debts (Interest) Act 1998. Send it by email AND post — a physical letter gets taken far more seriously.
Generate a professional demand letter in 30 seconds — referencing actual UK law, with the right tone to get results without burning bridges.
Generate My Letter — Free →Most tradespeople don't realise this, but UK law automatically entitles you to charge statutory interest on any overdue business-to-business invoice — whether you mentioned it on your invoice or not. The current rate is 11.75% per year (8% above the Bank of England base rate of 3.75%).
You're also entitled to a fixed compensation amount on top: £40 for debts under £1,000, £70 for debts between £1,000–£9,999, and £100 for debts of £10,000 or more. This applies automatically under the Late Payment of Commercial Debts (Interest) Act 1998.
Calculate exactly how much interest and compensation you're legally owed on top of the original invoice amount.
Calculate What I'm Owed →If your formal letter goes unanswered, a debt collection agency is your next option before court — and often the threat of one is enough. Agencies typically charge a percentage of the recovered amount (usually 10-25%), so you only pay if they succeed.
This is particularly worth considering for larger debts where the percentage fee is still worth it, or for customers who are clearly stringing you along rather than genuinely disputing the work.
Small claims court sounds intimidating, but it's specifically designed to be accessible without a solicitor. For amounts up to £10,000 in England and Wales, the process is straightforward, costs are low (filing fees start from around £35), and you can represent yourself.
A County Court Judgment (CCJ) against a customer has serious consequences for their credit rating — many customers pay up the moment you file, rather than have this on their record. You can also include your statutory interest and claim your filing fee back on top.
Email or call. Give benefit of the doubt once.
Professional letter referencing the Late Payment Act. Set a 7-day deadline.
Follow-up stating you'll proceed to court or debt collection within 7 days.
File a small claims court claim online via GOV.UK, or instruct a debt collection agency.
A customer who disputes the quality or scope of work is a different situation from one who's simply ignoring you. If there's a genuine dispute:
Important: If you don't have a written contract for the job, you're not without rights — but it's harder. English contract law still protects you if you can demonstrate the work was requested and completed through emails, photos, or text messages. This is exactly why a signed contract before every job matters — it removes the ambiguity entirely.
The best time to deal with a non-paying customer is before they become one. A watertight written contract before you start any job gives you a clear legal record of what was agreed, what it costs, and when payment is due — making both recovery and prevention dramatically easier.
Generate a watertight, UK-specific contract for your next job in 30 seconds. Includes payment terms, late payment clauses, and scope of work.
See GetPaidTrade Pro → Try Free Letter Generator First →If you've agreed payment terms (e.g. "payment within 14 days"), those apply. If no terms were agreed, UK law sets a default of 30 days from the date the invoice was received or the work was completed, whichever is later.
Yes — for business-to-business transactions, the right to charge statutory interest exists automatically under UK law, regardless of whether you mentioned it on your invoice. You don't need their agreement.
Yes, and more often than people realise. Many customers pay up the moment they receive a court claim rather than risk a County Court Judgment on their credit record. The process is designed to be accessible without legal representation, and filing fees are recoverable if you win.
The automatic statutory interest rights under the Late Payment Act apply specifically to business-to-business transactions. For private homeowners, you can still pursue payment through the same escalation steps, and you can still go to small claims court — but the statutory interest only applies automatically if it was written into your original contract or terms.
For debts under £10,000, small claims court is specifically designed so you don't need one, and using a solicitor for small claims is often not cost-effective. For larger amounts or complex disputes, a solicitor's initial advice can be worth the cost to understand your position before committing to a course of action.
This article provides general information based on UK law as of June 2026 and does not constitute legal advice. For complex disputes or high-value claims, consult a solicitor.