Late Payments Are a UK Business Problem
Half of all UK small business invoices are paid late. According to the Federation of Small Businesses, late payments contribute to 50,000 business closures every year in the UK and leave SMEs collectively owed over £23.4 billion at any given time.
If you're chasing overdue invoices, you're not alone. And you have more legal tools than you might think.
This guide provides copy-paste email templates for chasing overdue invoices in the UK, alongside the legal rights you can reference at each stage. Every template includes a payment link placeholder — because the fastest way to turn a chase into a payment is to make paying effortless.
Your Legal Rights: UK Late Payment Law
Before we get to the templates, here's what UK law says about late B2B payments.
The Late Payment of Commercial Debts (Interest) Act 1998
This Act gives UK businesses the right to:
Charge statutory interest at 8% per year above the Bank of England base rate on overdue commercial debts. At the current base rate, that's a significant annual percentage.
Claim fixed compensation for the cost of recovering a late payment:
£40 for debts up to £999.99
£70 for debts between £1,000 and £9,999.99
£100 for debts of £10,000 or more
Claim reasonable recovery costs beyond the fixed compensation if your actual costs are higher.
These rights apply automatically to B2B transactions (not consumer sales) unless you've agreed different payment terms in your contract — and even then, the Act limits how far those terms can go.
The Prompt Payment Code
The Prompt Payment Code is a voluntary UK government code that signatories commit to. It requires paying 95% of invoices within 60 days, with a target of 30 days. If your customer is a PPC signatory and is paying late, you can reference this in your correspondence. Check the signatory list on GOV.UK.
Standard UK Payment Terms
Unless you've agreed otherwise, the default payment term for B2B invoices in England and Wales is 30 days from the later of: (a) delivery of goods/services, or (b) the customer receiving the invoice. Many businesses set 14-day or 7-day terms in their contracts.
The Templates
Template 1: 7 Days Overdue — Friendly Reminder
Subject: Overdue invoice #[NUMBER] — friendly reminder Hi [NAME], I hope you're well. I'm writing to let you know that invoice #[NUMBER] for £[AMOUNT] was due on [DATE] and is now 7 days past its due date. I'm sure it's just been overlooked. You can pay securely online here: [PAYMENT LINK] If you've already sent payment, please accept my apologies — these emails can cross in the post. If there's any query with the invoice, just reply and I'll get it sorted. Thanks, [YOUR NAME] [COMPANY]
When to use: First overdue contact. Warm, assumes the best. No mention of penalties — too early.
Template 2: 14 Days Overdue — Second Chase
Subject: Invoice #[NUMBER] — 14 days overdue (£[AMOUNT]) Dear [NAME], Further to my email last week, invoice #[NUMBER] for £[AMOUNT] remains unpaid. The payment was due on [DUE DATE]. Please arrange payment at your earliest convenience: [PAYMENT LINK] If there is a reason for the delay — a dispute with the invoice, an approval process, or a cash flow issue — please let me know so we can find a solution. I'd rather work with you directly than escalate this. Kind regards, [YOUR NAME] [COMPANY] [PHONE]
When to use: The friendly approach didn't work. Now you're explicitly asking for either payment or communication. Mentioning "escalate" is a soft signal.
Channel tip: If this email doesn't get a response, resend the payment link via SMS. Text messages have a 98% open rate. See our guide on multi-channel payment collection.
Template 3: 21 Days Overdue — Firm Notice
Subject: Action required — invoice #[NUMBER] is 3 weeks overdue Dear [NAME], I've been in touch twice regarding the outstanding balance of £[AMOUNT] on invoice #[NUMBER], issued on [INVOICE DATE] with a due date of [DUE DATE]. We have not received payment or a response to our previous correspondence. Please make payment within 7 days using the link below: [PAYMENT LINK] I should let you know that under the Late Payment of Commercial Debts (Interest) Act 1998, we are entitled to charge statutory interest on overdue debts at 8% above the Bank of England base rate. We would prefer not to apply these charges and to resolve this promptly. If you are experiencing difficulties, please contact me on [PHONE] to discuss a payment plan. Regards, [YOUR NAME] [COMPANY]
When to use: Third contact. First mention of the Late Payment Act. This is where many overdue invoices get paid — the legal reference prompts action.
Template 4: 30 Days Overdue — Formal Warning
Subject: OVERDUE: Invoice #[NUMBER] — formal notice Dear [NAME], Despite multiple attempts to resolve this, the sum of £[AMOUNT] on invoice #[NUMBER] (due [DUE DATE]) remains outstanding. This balance is now 30 days past its due date. Under the Late Payment of Commercial Debts (Interest) Act 1998, we are now applying the following charges: - Statutory interest: 8% + Bank of England base rate per annum, calculated from [DUE DATE] - Fixed compensation: £[40/70/100] The total amount now due is £[REVISED AMOUNT]. To settle this account immediately: [PAYMENT LINK] If payment or a response is not received within 7 days, we will refer this debt for formal recovery. We remain willing to discuss a payment arrangement if you contact us at [EMAIL/PHONE] within that period. Yours sincerely, [YOUR NAME] [COMPANY]
When to use: 30 days overdue with no response. You're now applying statutory charges (which is your legal right). The revised total with interest and compensation often triggers immediate payment.
Template 5: 45 Days Overdue — Final Notice Before Legal Action
Subject: FINAL NOTICE — Invoice #[NUMBER] (£[AMOUNT]) Dear [NAME], LETTER BEFORE ACTION This letter serves as formal notice regarding the outstanding debt of £[AMOUNT] (including statutory interest and compensation) owed by [CUSTOMER COMPANY] to [YOUR COMPANY], relating to invoice #[NUMBER] dated [INVOICE DATE]. We have made the following attempts to collect this debt: - [DATE]: Invoice issued with [14/30]-day payment terms - [DATE]: First reminder sent - [DATE]: Second reminder sent - [DATE]: Formal notice sent with statutory interest applied None of these communications have resulted in payment or a substantive response. Under the Pre-Action Protocol for Debt Claims, we are required to give you 30 days from the date of this letter to: 1. Pay the outstanding amount in full: [PAYMENT LINK] 2. Propose a payment plan by contacting [NAME] at [EMAIL/PHONE] 3. Dispute the debt in writing, setting out the grounds of your dispute If none of the above actions are taken within 30 days, we will issue a claim through the County Court without further notice. Any court fees and legal costs will be added to the amount claimed. We strongly encourage you to resolve this matter before court proceedings become necessary. Yours faithfully, [YOUR NAME] [COMPANY] [COMPANY ADDRESS]
When to use: This is a Letter Before Action (LBA), a required step before issuing a County Court claim. The Pre-Action Protocol for Debt Claims requires you to send this at least 30 days before issuing proceedings. It must clearly state the debt, provide evidence of previous attempts to collect, and give the debtor options to pay, propose a plan, or dispute.
Important: If you intend to follow through with legal action, send this by recorded delivery as well as email.
For Specific Industries
Template 6: Professional Services (Law Firms, Accountants)
Subject: Outstanding fees — matter ref [REFERENCE] Dear [NAME], I am writing regarding our outstanding professional fees of £[AMOUNT] in respect of [BRIEF DESCRIPTION OF WORK], as detailed in our invoice #[NUMBER] dated [DATE]. Our standard payment terms are [14/30] days, and this invoice is now [NUMBER] days overdue. You can settle this account online: [PAYMENT LINK] We value our professional relationship and hope to resolve this promptly. If you wish to discuss the fees or a payment arrangement, please contact me directly. Yours sincerely, [YOUR NAME] [FIRM NAME]
Best for: Professional services firms that need formal but relationship-preserving language.
Template 7: Construction / Trades (Stage Payments)
Subject: Stage payment overdue — [PROJECT NAME] (£[AMOUNT]) Hi [NAME], Stage [NUMBER] payment of £[AMOUNT] for [PROJECT NAME] was due on [DATE] and is now [NUMBER] days overdue. As you know, we're due to begin the next phase on [DATE]. We'll need to receive payment for the completed stage before we can proceed with further work. Pay online here: [PAYMENT LINK] If there's an issue with the completed work that's holding up payment, let me know and I'll get it resolved. Cheers, [YOUR NAME] [COMPANY]
Best for: Builders, electricians, plumbers, and contractors who work in stages. Links payment to project continuation.
Template 8: Recurring Service (Monthly Retainer)
Subject: [MONTH] retainer payment overdue — £[AMOUNT] Hi [NAME], Your [MONTH] retainer payment of £[AMOUNT] was due on [DATE] and hasn't been received yet. You can pay online here: [PAYMENT LINK] As a reminder, our service agreement requires payment within [NUMBER] days of the invoice date. If payment is not received within [NUMBER] days, we may need to pause services until the account is brought up to date. Let me know if anything has changed on your end. Thanks, [YOUR NAME] [COMPANY]
Best for: Marketing agencies, IT support, recruitment firms, and any business collecting monthly retainer fees.
What to Do If Emails Don't Work
If three emails over 21 days haven't prompted payment, the problem isn't your email wording — it's the channel.
Switch to SMS (Day 14+)
[COMPANY]: Invoice #[NUMBER] (£[AMOUNT]) is overdue. Pay now: [PAYMENT LINK]. Reply QUERY if you have questions.
SMS has a 98% open rate and is read within 3 minutes on average. For overdue invoices that aren't being paid through email, SMS is the highest-impact next step.
Switch to WhatsApp (Day 21+)
If the customer uses WhatsApp (common in certain sectors and international business), send the payment link there. WhatsApp messages are read even more reliably than SMS, and the payment link works exactly the same way.
Send a Printed Letter With QR Code (Day 30+)
For formal escalation, a posted letter carries more weight than an email. Include a QR code generated from your payment link — the customer scans it with their phone and pays. See our guide on dunning letter templates for physical letter formats.
Common Questions
Can I charge late payment interest on any invoice?
Under the Late Payment Act, you can charge interest on B2B (business-to-business) commercial debts. It doesn't apply to consumer transactions. Your contract can set different terms, but the Act prevents contractual terms that are "grossly unfair."
When should I mention the Late Payment Act?
Not in the first reminder. Introduce it at the 21-day mark (Template 3) as a gentle reference, then apply charges at 30 days (Template 4) if needed. Leading with legal language on Day 7 damages the relationship unnecessarily.
Should I use these for consumer debts?
These templates are written for B2B invoices. Consumer debt collection has different rules (the Financial Conduct Authority regulates consumer credit and debt recovery). If you collect from consumers, check FCA guidance before sending payment demands.
What about the Small Business Commissioner?
The UK Small Business Commissioner can help resolve payment disputes between small suppliers and larger customers. If your client is a large company or public sector body that consistently pays late, file a complaint with the SBC.
Get Paid Faster
Every template on this page includes a payment link for a reason — it's the single highest-impact change you can make to your collection process.
Shuttle Payment Links work with 40+ payment gateways, support white-label branding, and can be sent via email, SMS, WhatsApp, or QR code. See how it works.