How to Handle Late Payments (and a template you can use)
Getting paid late is one of the most common frustrations freelancers and small business owners face and trust me - I’ve been there, done that, got the t-shirt. Cash flow is essential for keeping your work sustainable, but chasing clients for overdue invoices can feel awkward and uncomfortable.
The good news is that UK law is on your side. Here’s what you need to know.
Firstly, the legal bit.
In the UK, unless otherwise agreed, payment for goods or services is considered late 30 days after delivery or receipt of the invoice (whichever is later). Many freelancers set shorter payment terms such as 14 days, but if the invoice goes unpaid beyond the agreed date, you are legally entitled to act.
What the law says: The Late Payment of Commercial Debts (Interest) Act 1998
This Act gives you the right to:
Charge statutory interest: 8% above the Bank of England base rate
Add a fixed recovery fee: £40 for debts up to £999.99, £70 for debts £1,000–£9,999.99, and £100 for debts over £10,000
Claim reasonable additional costs: if your recovery costs exceed the fixed fee
These measures aren’t just punitive - they exist to protect small businesses and freelancers who often face power imbalances with larger clients.
How to Approach Clients About Late Payment
Start with a polite reminder - clients may have missed the invoice or experienced internal delays. Clearly state the invoice number, amount, and due date.
If payment still doesn’t arrive, send a firmer email referencing your rights under the Act. Setting a new deadline (usually seven days) helps keep things concrete.
As a last resort, you can pursue payment through the small claims court or a debt collection service - but in most cases, simply demonstrating you know your rights is enough to prompt action.
Consider your relationship with the client
While the law is clear, how you enforce it should depend on your relationship with the client. If this is a long-standing partner who usually pays on time, a gentle reminder might be all that’s needed. A little flexibility can preserve goodwill and demonstrate professionalism.
On the other hand, if late payment is a repeated pattern, it may be time to draw firmer boundaries—or even reassess whether the relationship is worth continuing. Protecting your business sometimes means having difficult conversations, but it also ensures you can prioritise clients who respect your time and work.
A template you can use
For an initial follow up
Hi [Client’s Name],
I hope you’re doing well. I just wanted to give a gentle reminder about invoice [insert invoice number] for [services ], issued on [date], which was due on [date]. It may have slipped through the cracks, so I thought I’d check in.
If it’s already been paid, please ignore this note. Otherwise, I’d be grateful if you could let me know when I should expect it to be processed.
Thanks so much, and I really appreciate you sorting this out.
Best wishes,
[Your Name]
For a more serious approach
Hi [Client’s Name],
I hope this finds you well. I wanted to follow up regarding invoice [insert invoice number] for [services rendered], issued on [date] with a due date of [date]. According to my records, the invoice remains outstanding and is now overdue. Could you please confirm if payment has already been made, or let me know when I should expect it to arrive?
As a reminder, under the UK Late Payment of Commercial Debts (Interest) Act 1998, businesses are entitled to:
Charge statutory interest at 8% above the Bank of England base rate on overdue invoices
Apply a fixed sum for debt recovery costs (between £40 and £100, depending on the invoice size)
Of course, I value our working relationship and want to make sure this is handled smoothly and professionally. If there are any issues, please do let me know - I’d much prefer to resolve things directly and keep our collaboration running positively.
Please could you arrange payment by as soon as possible?
Many thanks in advance, and I look forward to hearing from you.
This latter response can, of course, be amended for the terms of your invoice (e.g. you could charge a 20% fee, if it was stipulated).
