A UK letter before claim for an unpaid invoice, the Pre-Action Protocol basics, statutory interest and the Money Claim Online route.
In England and Wales you are expected to send a Letter Before Claim before issuing a small claim. If the debtor is an individual (including many sole traders) the Pre-Action Protocol for Debt Claims applies: include the amount, how it is made up, interest, and give 30 days to respond with the reply form and information sheet. For a limited company 14 days is commonly used. Claims up to £10,000 are normally on the small claims track and can be issued online via Money Claim Online.
For business-to-business debts, the Late Payment of Commercial Debts (Interest) Act 1998 may let you claim interest at 8% above the Bank of England base rate plus fixed compensation of £40, £70 or £100 depending on the debt size.
Subject: Letter Before Claim: unpaid invoice [INV-123] Dear [Name], I write regarding invoice [INV-123] dated [date] for [£ amount] for [services]. Payment was due on [due date] and remains outstanding despite reminders on [dates]. The total now due is [£ amount], plus statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998 of [£x] to date and fixed compensation of [£40/£70/£100]. Unless payment is received by [date: 14 days, or 30 days for an individual], I intend to issue a claim in the County Court without further notice, which may increase your liability for costs and interest. If you dispute the debt, please tell me why in writing by that date. Yours sincerely, [Your name]
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Generate my sequence freeGeneral information and draft wording only. Not legal advice. PaidNudge is not a law firm or a debt collector. Check your contract and local rules, or ask a qualified lawyer, before relying on any late fee, interest or court step.