Few things take the shine off a good month's work like watching an invoice sit unpaid past its due date. You have delivered the work, paid your own suppliers, and now you are the one chasing. It happens to almost every freelancer and small business in the UK, and it is rarely personal — but it still needs a firm, structured response. Here is a practical approach you can apply from the moment a reminder is due.

Get the basics right before you chase anything

Chasing is far easier when the paperwork is watertight. Before you send a single reminder, check that the invoice itself gives the customer no room to stall. A well-built invoice includes the invoice number and date, your business name and address, the customer's registered or trading address, a clear description of the work, the amount plus VAT if you are registered, your bank details, and — crucially — the payment terms and due date stated in plain words.

It also helps to agree terms in writing before the work starts. A short email confirming "30 days from invoice date" or "50% deposit, balance on delivery" is enough to prevent most arguments later. If your customer is another business, note that your terms carry more weight once they have been shared and not objected to. Keep a simple spreadsheet or your accounting software ledger showing invoice date, due date, amount, and days overdue — you cannot manage what you have not recorded.

A reminder schedule that does the job

Most late payments are simply forgotten, so a calm and predictable sequence recovers the majority of them. Try this pattern:

• Three days before the due date: a friendly note confirming the invoice is due and asking whether anything is needed to process it.
• On the due date: a short email thanking them and restating the amount and due date.
• Seven days overdue: a firmer email, copied to your usual contact and their accounts payable address if you have one.
• Fourteen days overdue: a phone call. A five-minute conversation resolves more than five emails, and it is much harder to ignore.
• Twenty-one days overdue: a formal letter headed "Final reminder" stating the amount, the original due date, and what happens next.

Keep every message short, polite, and specific. Always quote the invoice number, amount, and due date so the recipient can act without digging through their inbox.

Charging interest and compensation

Where your terms allow it — and for most business-to-business debts in the UK, statute does — you can charge late payment interest. Under the Late Payment of Commercial Debts (Interest) Act 1998, the default rate is 8% above the Bank of England base rate, calculated daily from the day after the due date, provided your contract does not specify something else.

You can also claim fixed compensation for the cost of recovering the debt: £40 for debts under £1,000, £70 for debts between £1,000 and £9,999.99, and £100 for debts of £10,000 or more. These are automatic for qualifying business debts, and you can claim reasonable further recovery costs on top in some cases.

Two important caveats. First, this statutory scheme applies to business-to-business debts, not to consumers, so for private clients you can only charge interest if your contract says so. Second, never add interest quietly — tell the customer in writing that you intend to apply it from a stated date, and show the calculation. Many businesses waive the interest in exchange for immediate payment, which is often the fastest route to being paid at all.

Pausing new work until you are paid

If a customer is significantly overdue and you are still delivering, you are effectively funding their business with your time. Check your terms for a suspension clause, then use it. A short message works well: "As invoice 1042 is now 30 days overdue, I will pause work on the current project from Monday until the account is brought up to date. I am happy to restart the same day payment clears."

Be fair but consistent. Set the pause in writing, give a clear date, and confirm what will happen to deadlines as a result. If you are holding goods, check whether your terms include retention of title — it can be a powerful lever, but only if it was agreed in advance.

Escalating without losing the relationship

If reminders, calls, and a suspension have not worked, move to formal recovery. Send a letter before action giving a final seven or fourteen days, then consider the small claims track for debts under £10,000 — the process is designed to be used without a solicitor, and a county court judgment focuses attention quickly. For larger or disputed sums, take advice before proceeding. Keep records of every message, call, and promise; they matter if the claim is defended.

Finally, learn from each one. If the same customer pays late twice, ask for a deposit, shorter terms, or staged payments on the next job. If late payment is becoming a pattern across your client base, tighten your terms and start invoicing the day you deliver, not the day you remember. Getting paid on time is not luck — it is a system, and it is one worth building.