How to Chase a Late Payment as a Tradesman UK

Why Chasing Payment Feels Awkward (But Isn't)

Most tradespeople hate chasing money. It feels confrontational, especially with domestic customers you've built a rapport with on site. But here's the reality: the majority of late payments are not deliberate. The customer has forgotten, your invoice is buried in their inbox, or they assumed it could wait.

Chasing professionally — with the right tone and the right paperwork — almost never damages a relationship. What damages relationships is letting resentment build while staying silent. A polite, firm reminder is expected and respected.

Step-by-Step: How to Chase a Late Invoice

1. Send a polite reminder at 7 days overdue Most late payments resolve here. Keep it friendly and assume the best — they've probably just missed it. Email works better than WhatsApp for a paper trail, but a message is fine for smaller jobs.
2. Follow up by phone at 14 days overdue A brief, professional call is harder to ignore than an email. Reference your invoice number. Ask if there's an issue with the work or if they need to discuss payment terms. Stay calm.
3. Send a formal late payment letter at 21 days overdue This is where the tone shifts. Reference the invoice number, the amount, the original due date, and state that statutory interest will begin to accrue. Keep it factual, not emotional.
4. Issue a Letter Before Action at 30+ days overdue This is the final warning before legal action. It must state the amount owed, the date it was due, that you intend to pursue through the courts, and give them 7 days to pay. Send by email and recorded post.
5. File a small claims claim if still unpaid For debts up to £10,000 in England and Wales you can use the Money Claim Online service at gov.uk. Court fees start at £35 for claims under £300. Most debtors pay before it ever reaches a hearing.

Ready-to-Send Templates

Copy and adapt these. Replace the bracketed fields with your own details. Keep your tone professional throughout — it matters if this ever reaches a court.

Your Legal Rights as a UK Sole Trader

Most tradespeople don't know these rights exist, let alone use them.

Statutory interest on late payments

For commercial debts (business-to-business), the Late Payment of Commercial Debts Act entitles you to charge 8% above the Bank of England base rate automatically once an invoice is overdue. You don't need to have stated this on your invoice — it's your legal right by default. For domestic customers (homeowners), this act technically doesn't apply, but you can still add interest if your original invoice stated you would.

Debt recovery costs

On top of interest, you can also claim a fixed compensation charge for the cost of recovering the debt: £40 for debts under £1,000, £70 for debts between £1,000 and £9,999, and £100 for debts over £10,000.

Small claims court

For debts up to £10,000, the small claims track in England and Wales is designed to be used without a solicitor. Filing online at moneyclaims.service.gov.uk takes around 20 minutes. The filing fee is recoverable from the debtor if you win. Most debtors pay as soon as they receive the court paperwork — fewer than 10% of small claims ever reach a hearing.

Why a Proper Invoice Is Your Best Protection

Everything above is significantly harder if you don't have a proper paper trail. A formal, numbered PDF invoice that clearly states the amount, the due date, and your bank details gives you something concrete to reference in every reminder, in every template, and in any court claim.

A WhatsApp voice note or a handwritten note on a receipt doesn't cut it when you're in a dispute. A numbered invoice with a reference — for example, INV-2026-047 — that you can point to at every stage of the process is what separates tradespeople who get paid from those who write the debt off.

If you want to read more about what a proper invoice should include, see our guide on how to invoice as a self-employed tradesman in the UK.

The Best Way to Avoid Late Payments in the First Place

Invoice the same day you finish the job — ideally before you leave the driveway. Research consistently shows that same-day invoices are paid significantly faster than invoices sent days later. The job is done, the customer is satisfied, and the amount is fresh in both your minds.

Set clear payment terms on every invoice — 7 days for domestic, 30 days for commercial — and state them explicitly. A customer can't claim they didn't know when payment was due if it's printed on the invoice they received.

For larger jobs, consider taking a deposit upfront. A 25–50% deposit before work starts protects your materials cost and filters out customers who were never serious about paying.