Late payment letter templates for UK sole traders

Most late invoices end here. Always assume oversight, never bad faith — a friendly nudge gets paid faster than a formal letter and keeps the relationship warm.

Subject: Invoice #1042 – just a quick reminder

Hi [Name],

Hope the [job/project] is all sorted and you're happy with the work.

Just a quick note that invoice #1042 for £[amount] was due on [date] — it may have slipped through the net. Could you take a look when you get a moment?

If it's already been sent, ignore this and thanks!

Cheers,
[Your name]
[Phone number]

Now you put the facts on record. The dispute offer matters: it forces a silent non-payer to either pay or give a reason you can actually fix.

Subject: Overdue: Invoice #1042 – [amount]

Hi [Name],

Invoice #1042 for £[amount], issued on [date], is now 14 days past its due date. Can you confirm when payment will be made?

If there's a problem with the invoice or the work — a dispute, a missing PO number, anything administrative — tell me today and we'll sort it out quickly.

Otherwise, please arrange payment by [specific date]. After that I'll have to add statutory interest and compensation charges as set out in the Late Payment of Commercial Debts legislation.

Thanks,
[Your name]

Formal, dated, and specific about what happens next. Keep copies of everything — if this ends up in small claims court, your paper trail is your case.

Subject: FINAL DEMAND – Invoice #1042 – [amount]

Hi [Name],

Despite reminders on [date 1] and [date 2], invoice #1042 for £[amount] remains unpaid, now [X] days past due.

Unless payment clears by [date — typically 7 days], I will:

- Add statutory interest at 8% above the Bank of England base rate, plus fixed compensation of £[40/70/100 depending on debt size], as permitted by the Late Payment of Commercial Debts Act 1998;
- Pass the debt to a collection service, at which point collection fees become payable as well.

I'd much rather resolve this directly. Payment details are below.

[Your name / bank details / phone]

The compensation amounts (most traders don't know these)

Under the Late Payment of Commercial Debts Act 1998 you can charge, per overdue invoice, on top of interest at 8% above the Bank of England base rate (calculated daily):