Late payments are the tax of being freelance. Everyone deals with it. Most people handle it badly.
After building tools for UK freelancers for the past few months, the single most common pain point I hear is: "My client has not paid and I do not know what to say."
So here is the actual escalation path that works, from gentle nudge to legal action.
Stage 1: The friendly reminder (day 1-3 overdue)
Do not apologise. Do not say "just checking in." Be direct but warm:
Hi [name], quick one — invoice #[number] for £[amount] was due on [date]. Could you let me know when I can expect payment? Happy to resend if needed.
That is it. Short, clear, no drama. Most late payments are just admin failures.
Stage 2: The firm follow-up (day 7-14)
If the friendly reminder got nothing:
Hi [name], following up on invoice #number. This is now [X] days overdue. I would appreciate confirmation of when payment will be made. Please note that under the Late Payment of Commercial Debts (Interest) Act 1998, I am entitled to charge interest at 8% above base rate on overdue invoices.
Mentioning the Act is not aggressive — it is factual. And it works. Most clients pay within 48 hours of seeing it.
Stage 3: Letter before action (day 30+)
If you are still being ignored after a month:
LETTER BEFORE ACTION
I write regarding the outstanding sum of £[amount] for [work description], invoiced on [date] under invoice #[number].
Despite previous reminders, this invoice remains unpaid. I am now providing you with 14 days notice of my intention to issue proceedings in the County Court for recovery of this debt, plus statutory interest and compensation.
This is the nuclear option. Send it recorded delivery. Most people never need to actually go to court — the letter alone resolves 80%+ of cases.
Stage 4: Small Claims Court (last resort)
For debts under £10,000 in England and Wales, you can file online at Money Claims Online. Court fee is £35-£455 depending on amount. Most defendants settle before the hearing.
The maths on late payment interest
The Late Payment Act entitles you to:
- Interest: 8% + Bank of England base rate (currently 4.5%) = 12.5% per year
- Compensation: £40 (debt up to £999.99), £70 (£1,000-£9,999.99), £100 (£10,000+)
On a £2,000 invoice that is 60 days late, that is roughly £41 in interest plus £70 compensation. It adds up.
We built a free late payment interest calculator if you want to see the exact figures for your situation.
Prevention beats cure
The best approach:
- Payment terms on every invoice (14 or 30 days, your choice)
- Deposits upfront for new clients (30-50% is standard)
- Automated reminders — do not rely on remembering to chase
I build free financial tools for UK freelancers at landolio.com. The late payment interest calculator and payment reminder templates are the most-used resources. If you want the full system in one download, the Getting-Paid Toolkit (£19) has everything.
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