How to deal with clients who will not pay in the UK

You are not alone in this

Getting stiffed on a job is one of the worst feelings in the trades. You have given up your time, bought materials, done quality work, and someone just will not pay. According to the Federation of Small Businesses, one in three small business owners has considered giving up entirely because of chronic late payment.

But you have more power than you think. UK law is firmly on the side of the creditor, and recovering money you are owed is more straightforward than most people realise.

Step 1: the reminder sequence (days 1-14)

Before you escalate, make sure you have actually chased properly. It sounds obvious, but plenty of unpaid invoices are down to disorganisation rather than dishonesty. The client forgot, lost the email, or their accounts person is on holiday.

Send a structured reminder sequence: one on the due date, one at 7 days overdue, one at 14 days. Each should include the invoice number, amount, and how to pay. Keep records of every communication.

Step 2: the phone call (day 14-21)

If emails have gone unanswered, pick up the phone. A direct conversation achieves more in two minutes than a week of emails. You will quickly find out if this is a "forgot to pay" situation or a "refusing to pay" situation.

If the client raises a dispute about the quality of work, address it head-on. Offer to inspect and rectify any genuine issues. Document everything in writing afterwards.

Step 3: letter before action (day 21-28)

This is the formal legal step before court proceedings. A letter before action puts the debtor on notice that you intend to take legal action.

Your letter must include:

• The amount owed (original invoice total)
• Statutory interest accrued under the Late Payment of Commercial Debts (Interest) Act 1998
• Fixed compensation (£40 for debts under £1,000, £70 for £1,000-£9,999, £100 for £10,000+)
• A deadline of 14 days to pay in full
• A statement that court proceedings will follow

Use our late payment calculator to work out the exact interest and compensation amounts.

Send the letter by recorded delivery and keep the proof of posting. About 70% of cases settle at this stage.

Step 4: small claims court (day 42+)

If 14 days pass with no response, file a claim through Money Claims Online. For debts up to £10,000, this goes through the small claims track.

You claim the court fee back from the debtor if you win. The defendant has 14 days to respond. If they do not, you get a default judgement.

Step 5: enforcing the judgement

Winning in court does not automatically put money in your bank. If the debtor still does not pay after a CCJ, your options include:

• Warrant of control: Bailiffs collect goods. Fee: £77.
• Attachment of earnings: Payments deducted from wages.
• Third party debt order: Freezes money in their bank account.
• Charging order: Secures the debt against their property.

Alternative: mediation

For disputes where the relationship matters, the Small Claims Mediation Service offers free telephone mediation for claims under £10,000. Mediation has a 65% success rate and is much faster than waiting for a hearing.

Protecting yourself for next time

The tradespeople who rarely get stiffed tend to do a few things consistently:

• Written quotes with clear payment terms before starting. Use our quote generator.
• Deposits on jobs over £500, collected before ordering materials.
• Progress photos and signed completion forms for larger jobs.
• Credit checks on new commercial clients through Companies House.
• Detailed invoices with clear descriptions of work completed.

Frequently asked questions

Can I add interest to an unpaid invoice from a residential customer?

The Late Payment Act only covers B2B transactions. For residential customers, you can only charge interest if it was included in your original terms and conditions.

How long do I have to chase an unpaid invoice?

The limitation period is 6 years from the date the debt became due. After 6 years, you lose the right to recover through the courts.

Will a CCJ affect the client's credit rating?

Yes. A County Court Judgement stays on someone's credit record for 6 years, unless they pay the full amount within one calendar month of the judgement date.

Can I recover my legal costs from small claims court?

On the small claims track, each party generally bears their own costs. You can recover the court fee and limited expenses but not solicitor fees.

What if the client has gone into liquidation?

Register your claim with the appointed insolvency practitioner. Recovery rates for unsecured creditors average around 5p in the pound.