Getting paid
Payment terms, late payment interest and compensation, and how to chase unpaid invoices politely but firmly.
Set clear payment terms
Put the due date on every invoice, not just the number of days. If you haven't agreed terms with a business customer, the law sets a default of 30 days. Agency contracts often state their own weekly payment cycle, so check it and match your due date to it.
Your rights when a business pays late
Under the Late Payment of Commercial Debts legislation, you can usually claim statutory interest of 8% a year above the Bank of England base rate on a late business-to-business invoice. You can also claim fixed compensation of £40, £70 or £100, depending on the size of the debt. This doesn't apply to invoices to private individuals (consumers). See payment terms and late payment.
Chase in steps
Start with a friendly reminder the day after the due date. Then send a firmer email that mentions statutory interest. Then send a final notice with a deadline. Keep it factual and keep copies. If nothing works, Money Claim Online is the usual next step for amounts in England and Wales. See how to chase an unpaid invoice.
Questions
What are the default payment terms in the UK?
If no terms were agreed, a business must pay within 30 days of receiving the invoice or the goods or services, whichever is later.
Can I charge interest on a late invoice?
On business-to-business invoices, usually yes. That's statutory interest at 8% above the Bank of England base rate, plus fixed compensation.
Does late payment law cover homeowners?
No. The Late Payment Act covers business customers only, so agree your terms in writing with private clients.