Last checked October 2026 · by the PaySorted team
1. Check the basics
Before anything else, make sure the customer actually has the invoice, it's correct, and the due date has passed. Check your bank, including any payments with an odd reference. A surprising number of "won't pay" invoices are really "never got it" or "paid the wrong reference".
2. Find out why
Ring or message and ask, politely, whether there's a problem. The answer decides what you do next:
- They forgot or have been busy: send the payment link and agree a date.
- They're unhappy with the work: listen, offer to put right anything that's genuinely wrong, and agree what happens to the money. A dispute is better sorted than taken to court.
- They can't afford it all at once: offer a payment plan in writing. Some money now beats none.
- They're in a Breathing Space: you must stop chasing. See what is Breathing Space.
3. Send reminders, in writing
Keep everything in writing so there's a record. Start friendly, get firmer, and make paying easy with a link or your bank details on every message. Space them out, roughly a week apart. Our payment reminder templates have wording for every stage.
4. Add interest if they're a business
If your customer is a business (including a sole trader), the law lets you add interest at 8% above the Bank of England base rate plus £40 to £100 compensation. Mentioning this in your final reminder often gets the invoice paid. Use the late payment interest calculator.
5. Send a letter before action
Before you can go to court you must send a formal letter before action and give the customer time to respond: 30 days for an individual or sole trader, usually 14 days for a company. See how to write a letter before action or use the free template.
6. Court or a collection agency
If the letter doesn't work, you have three main options:
- Small claims: in England and Wales, claims up to £10,000 usually go to the small claims track, and you can start online with Money Claim Online. There's a court fee, which you add to the claim. Scotland and Northern Ireland have their own procedures.
- A debt collection or legal partner: they handle the letters and court process for a fee or a share of what's recovered.
- Write it off: if the amount is small or the customer has nothing, chasing can cost more than it's worth. If you use cash basis (most sole traders), unpaid money was never counted as income, so there's nothing extra to claim. If you use traditional (accruals) accounting, you can deduct it as a bad debt. If you're VAT registered and paid the VAT already, you can usually reclaim it through VAT bad debt relief after 6 months. Ask your accountant.
What not to do
- Don't threaten, embarrass or contact them at unreasonable hours. Harassing someone over a debt can be a criminal offence.
- Don't post about them online or contact their employer, family or neighbours.
- Don't remove work or materials you've already fitted.
- Don't keep chasing someone who is in a Breathing Space or has told you they've paid without checking first.
General information for England and Wales (checked October 2026), not legal advice. For large or complicated debts, speak to a solicitor.
Common questions
What can I do if a customer refuses to pay?
Find out why, send reminders in writing, add statutory interest if they're a business, then send a letter before action. If that doesn't work, make a small claim or pass the debt to a collection partner.
How long do I have to chase an unpaid invoice?
In England and Wales you generally have 6 years from when the money was due to start a court claim. Don't leave it that long: the older a debt, the harder it is to collect.
Can I charge interest to a homeowner who won't pay?
Only if your terms said so before the work started. Statutory late payment interest only applies to business customers. If you go to court, you can usually ask for interest on the claim.