Guides · Contract disputes · Series
You did the work. They haven't paid.
How a business recovers an unpaid invoice in England and Wales, in the order it usually happens: what can be added for late payment, what the letter before action has to say, what to do when the customer disputes the bill, when a statutory demand is and isn't the right tool, which court track a claim falls into and what that means for costs, issuing a claim online, enforcing a judgment, and how long there is to do it.
9 guides · about 56 minutes to read the lot · England & Wales
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Unpaid invoices, start to finish
Unpaid invoice: what are my options before going to court?
What you can claim on a late commercial invoice, what a letter before action must say, and when the small claims track is the right route.
5 min02Late payment interest and compensation on unpaid invoices
What a business can add to a late commercial invoice under the Late Payment of Commercial Debts (Interest) Act 1998: statutory interest, fixed sums and recovery costs, and what applies when the Act does not.
6 min03Letter before action for an unpaid invoice: what the court expects
Which pre-action rules apply to a debt owed by a company and a debt owed by an individual or sole trader, what the letter has to contain and enclose, the 30-day periods, and what the court can do if the steps are skipped.
7 min04Customer disputes the invoice: defences, set-off and counterclaims
The grounds a customer usually gives for not paying an invoice, how abatement, set-off and counterclaims work, when a no set-off clause holds, and how summary judgment deals with a weak defence.
6 min05Statutory demand for an unpaid business debt: how it works
What a statutory demand is, the thresholds and time limits for companies and individuals, how it is served and challenged, what a petition costs, and why it is the wrong tool for a disputed debt.
6 min06Debt claims: which court track, and what costs can you recover?
How a defended money claim is allocated to the small claims, fast, intermediate or multi-track, what each track means for the legal costs a winning party can recover, and the court fees for issuing a claim and for the hearing.
6 min07Issuing a debt claim online and judgment in default explained
How a claim for a fixed sum is started through Money Claim Online or the Online Civil Money Claims service, what the particulars of claim must say, how long the defendant has to respond, and what default judgment, admissions, mediation and setting aside mean.
6 min08Enforcing a County Court judgment: getting paid after you win
What happens when a debtor ignores a County Court judgment: orders to obtain information, taking control of goods, third party debt orders, charging orders, attachment of earnings, judgment interest, time limits and insolvency.
7 min09Unpaid invoice time limits: how long do you have to claim?
How the Limitation Act 1980 applies to unpaid invoices: the six-year and twelve-year periods, when time starts, what an acknowledgment or part payment does, what counts as bringing a claim, and standstill agreements.
7 minFrequently asked
Can I add interest and costs to an unpaid invoice?
Where both sides were acting in the course of business, the Late Payment of Commercial Debts (Interest) Act 1998 gives the supplier statutory interest at 8% a year above the Bank of England base rate, plus a fixed sum of £40, £70 or £100 depending on the size of the debt. It does not apply where the customer is a consumer.
Do I have to send a letter before going to court?
The court expects one, and can penalise a party that issues a claim without it. The Practice Direction on Pre-Action Conduct expects a letter setting out the debt and giving a reasonable time to respond. Where the debtor is an individual, including a sole trader, the Pre-Action Protocol for Debt Claims applies instead and gives them 30 days to reply.
The customer says the work was defective. Does that stop me claiming?
No, but it changes the route. A genuine dispute about the work can be raised as a defence, a set-off or a counterclaim, and the court decides it on the evidence. A debt that is genuinely disputed on substantial grounds is the wrong subject for a statutory demand.
How long do I have to claim an unpaid invoice?
For an ordinary contract debt, six years from when the right to be paid arose (Limitation Act 1980, s.5). For work or services that can be when the work was done, not the date on the invoice. A written, signed acknowledgment of the debt or a part payment made before the time runs out starts a fresh six years.
When you’ve read enough
Work out where you stand in five minutes.
The check asks for the survey date, the date you found the problem, a value band and what you hold. It gives you an estimated deadline, the likely court track and a report you can take to a solicitor — and, only if you ask, an introduction to one.