What To Do When A UK Client Doesn't Pay (2026 Guide)

A non-paying client is one of the most stressful things a freelancer can face. The good news: in the UK you have strong legal tools on your side, including the right to charge statutory interest, claim compensation for recovery costs, and use the Money Claim Online service to take a client to the small claims court without a solicitor. This 2026 guide walks you through what to do, in the right order, to recover what you're owed.

1. Start with a Polite Payment Reminder

Most late payments are oversights, not bad faith. A short, friendly email a few days after the invoice falls overdue is usually enough. Restate the invoice number, the amount, the due date, and the bank details. Offer to resend the invoice as a PDF in case it was lost.

If that doesn't get a response within seven days, follow up with a firmer email and a phone call. Keep everything in writing — you may need this paper trail later.

2. Know Your Rights Under the Late Payment Act

Under the Late Payment of Commercial Debts (Interest) Act 1998, any business that pays you late owes you:

• Statutory interest at 8% above the Bank of England base rate, calculated daily from the day the payment became overdue.
• Fixed compensation for the cost of chasing the debt:
  • £40 for debts under £1,000
  • £70 for debts between £1,000 and £9,999.99
  • £100 for debts of £10,000 or more
• Reasonable recovery costs above the fixed sum (e.g. a debt collection agency or solicitor's fees), where these exceed the fixed compensation.

These rights apply automatically — you don't have to mention them in your contract. If your contract is silent on payment terms, the default is 30 days for business clients and public sector bodies. Anything longer than 60 days can usually be challenged as "grossly unfair."

You can use the GOV.UK late payment interest calculator to work out the exact amount.

3. Send a Formal Demand for Payment

If polite chasing has failed, escalate to a formal demand letter (sometimes called a "letter before action" or, more correctly under the Pre-Action Protocol for Debt Claims, a letter before claim). It should:

• State the original invoice amount, date, and what the work was for
• Add the statutory interest accrued to date and the fixed compensation
• Set a clear deadline — usually 14 to 30 days — for payment
• Warn that if payment is not received by the deadline, you will issue a county court claim without further notice

Send it by email and by recorded post. Under the Pre-Action Protocol, business-to-business debts technically don't need the same 30-day reply window as debts owed by individuals, but allowing 14 days is sensible and shows the court you acted reasonably.

4. Issue a County Court Claim via Money Claim Online

If the deadline passes with no payment, the next step in England and Wales is Money Claim Online (MCOL) at gov.uk. You can issue a claim yourself — no solicitor required — for any undisputed debt up to £100,000. Debts up to £10,000 are dealt with under the small claims track, where legal costs are not normally awarded against the loser, so the risk of pursuing is limited.

Court fees scale with the amount claimed (for example, around £35 to issue a claim for £300, or £455 for a claim of £5,000). These fees are recoverable from the client if you win. In Scotland, use the Simple Procedure through the sheriff court for claims up to £5,000; in Northern Ireland, use the Small Claims Court for claims up to £3,000.

In our experience, a surprising number of clients pay as soon as the court paperwork lands on their doormat. Many ignored emails get answered the same day a claim form arrives.

5. Consider a Statutory Demand for Larger Debts

If the client is a limited company and owes you £750 or more, you can serve a statutory demand. If they don't pay or dispute it within 21 days, you can petition to wind the company up. For an individual or sole trader, the threshold is £5,000, and the consequence is bankruptcy proceedings.

This is a serious step and should not be used for a debt that is genuinely disputed — courts can set aside abusive demands and order costs against you. But for a clearly unpaid invoice from a solvent company, the threat alone often unlocks payment.

6. Use a Debt Collection Agency

For debts you'd rather not chase yourself, a UK debt collection agency will typically take a percentage (often 10% to 25%) of what they recover. Their fees are recoverable from the debtor under the Late Payment Act, provided they're reasonable. This is often the right route when the amount is large, the client has gone quiet, or you simply don't want to manage the process.

7. Prevent It Happening Again

Recovering an unpaid invoice is exhausting. The best defence is to make non-payment less likely in the first place:

• Get a deposit up front. 25% to 50% before work starts is standard for project work.
• Use a written contract with clear payment terms, late-payment interest, and a kill fee. Our guide to negotiating freelance rates and contracts in the UK covers what to include.
• Invoice promptly and accurately. Double-check the bank details, the client's company name, and the VAT treatment. See our guide to managing freelance finances and taxes for invoicing best practice.
• Stage the work. Break large projects into milestones with payment due at each one.
• Diversify your client base. Spreading work across multiple clients means a single non-payment isn't an emergency.
• Run a credit check on new clients with large engagements — even a free Companies House lookup will tell you if a company has filed accounts on time.

When to Walk Away

Not every unpaid invoice is worth pursuing. For a small debt, the time and emotional cost of court action can outweigh the recovery, especially if the client has no assets. Be willing to write off small amounts and learn from the experience — but for anything significant, the UK system is genuinely on your side, and the steps above usually work.

Frequently Asked Questions

How long do I have to chase an unpaid invoice in the UK? Six years from the date the debt became due, under the Limitation Act 1980. Five years in Scotland.

Can I charge interest on a late invoice without it being in my contract? Yes. Statutory interest under the Late Payment Act applies automatically to commercial debts even if your contract says nothing about it.

Do I need a solicitor to take a client to small claims court? No. Money Claim Online is designed to be used without a solicitor for debts up to £100,000, and the small claims track (under £10,000) is set up for self-representation.

What if my client is a limited company that goes bust? You become an unsecured creditor and join the queue. Recovery is usually pence in the pound. This is why a deposit and milestone billing matter — you're never carrying the full project's risk.

Can I name and shame a non-paying client publicly? Be very careful. Truthful factual statements are generally protected, but anything that strays into opinion or implies dishonesty can expose you to a defamation claim. Stick to the legal route.