What to do when a client won’t pay your invoice

Don’t panic

Let’s start here: this is horrible. You did the work. You delivered what was asked. And now someone is not paying you for it. It feels personal, like they are saying your work was not worth what they agreed to pay.

Take a breath. Most unpaid invoices do get resolved. The vast majority of clients who do not pay on time are disorganised, not malicious. Their accounts person is on holiday. The invoice got buried in an inbox. The person who approved the work forgot to tell finance. Only a tiny fraction of non-payers are genuinely trying to stiff you.

The other thing worth knowing is that UK law is firmly on your side when it comes to B2B debts. The Late Payment of Commercial Debts Act gives you the right to charge interest and compensation. The small claims court process is designed for exactly this kind of dispute. You do not need a solicitor. You do not need to spend thousands.

What you do need is a plan. That is what this guide is: a step-by-step escalation path, from a gentle nudge to formal legal action. Follow it in order. Most people never get past step 2.

The escalation path

Think of this as a ladder. You start at the bottom with the lightest touch, and only climb to the next rung if the one below does not work. Each step gives the client a chance to do the right thing before you escalate further.

Most invoices get paid by step 2. If you are routinely reaching step 4, the problem may be your client selection, not your chasing.

Step 1: Chase politely (1–7 days overdue)

The invoice is a few days late. At this stage, give them the benefit of the doubt. Maybe it slipped through the cracks. Maybe their accounts team processes payments on a specific day. A short, friendly reminder is all you need.

Key points: assume good faith, keep it brief, include the invoice as an attachment, and be specific about the amount and the date it was due. Do not apologise for asking. You are simply flagging that a payment is outstanding.

Step 2: Get firm (7–14 days overdue)

You have already sent a polite reminder and heard nothing back. Time to shift the tone. Drop the “just checking in” language. Be direct about what you need and when you need it.

At this stage, you want to: state clearly that the payment is overdue, ask for a specific date they will pay by, and make it plain that you are tracking this. You are not angry, but you are no longer giving them the benefit of the doubt.

Tone: Professional and direct. No apology, no hedging. You are stating facts and setting a deadline.

Step 3: Formal demand (14–30 days overdue)

Two weeks and no payment. This is where you bring out your legal rights. Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge statutory interest at 11.75% per year (8% + the Bank of England base rate of 3.75%) on any B2B debt paid late. You are also entitled to fixed compensation of £40–£100 depending on the invoice amount.

You do not need a contract clause for this. It is your automatic legal right. Mentioning it in your email serves two purposes: it tells the client you know your rights, and it increases the cost of continued non-payment.

Full breakdown of your rights: Your Late Payment Rights Explained.

Tone: Formal and serious. You are putting them on notice that this has legal consequences.

Use the late payment calculator to work out the exact interest and compensation for your invoice.

Step 4: Letter Before Action (30+ days overdue)

If your formal demand has been ignored, the next step is a Letter Before Action (LBA). This is a structured legal letter that gives the client a final deadline (typically 14 days) to pay the debt before you issue court proceedings.

An LBA is not optional if you are thinking about going to court. It is a requirement of the Pre-Action Protocol for Debt Claims. Courts expect to see that you made a genuine effort to resolve the matter before filing a claim. If you skip this step, a judge may penalise you on costs even if you win.

The letter itself should set out: the amount owed (including any interest and compensation), the original invoice details, a summary of your previous attempts to collect, a 14-day deadline, and a clear statement that you will issue court proceedings if they do not pay.

The good news: a surprising number of clients pay up when they receive an LBA. The formal tone and the mention of court proceedings concentrates the mind wonderfully. Many freelancers find that the LBA is the last step they ever need.

Step 5: Court claim

If the LBA deadline passes and you still have not been paid, you can file a claim through Money Claim Online (MCOL). This is the government’s online system for making county court claims in England and Wales. For claims under £10,000, your case will be allocated to the small claims track, which is designed for individuals to handle without a solicitor.

It is not as scary as it sounds. The process is mostly paperwork. You fill in an online form describing the claim, pay a court fee, and the court sends a copy to the defendant. They have 14 days to respond. If they do not respond at all, you can ask for a default judgment, which means you win automatically. If they do respond, the case is allocated to a track and you may need to attend a hearing.

Most cases settle before the hearing. Once a defendant receives a court claim, the reality of the situation tends to sink in. Settling is almost always cheaper than fighting.

If you win and they still do not pay, you have enforcement options: county court bailiffs, attachment of earnings (deductions from their salary), third-party debt orders (freezing their bank account), or a charging order (securing the debt against their property).

Special situations

Not every non-payment situation fits neatly into the escalation path above. Here are some common edge cases and how to handle them.

How to prevent this from happening again

Chasing unpaid invoices is miserable. The best strategy is to avoid the situation in the first place. Here are the things that actually make a difference.

New late payment legislation (2026)

The UK government is introducing new measures to tackle late payment of small businesses. The key changes include a mandatory 60-day payment cap for large businesses paying small suppliers, plus new enforcement powers for a strengthened Small Business Commissioner.

This is good news for freelancers. The current system relies entirely on individual freelancers and small businesses enforcing their own rights, which most do not have the time or energy to do. The new legislation adds top-down enforcement, meaning large companies that routinely pay late could face penalties without you having to take them to court yourself.