The Ultimate Guide to Chasing Late Invoices in the UK (with Email Templates)

There are few things more frustrating for a freelancer or sole trader than checking your bank account and seeing a payment that was due days—or even weeks—ago is still missing. You delivered the work, the client was happy, and you sent the invoice on time. Yet, here you are, spending your valuable, non-billable hours wondering how to chase a late payment without sounding desperate or damaging a client relationship.

If this sounds familiar, you’re not alone. Late payments are a chronic issue for the self-employed in the UK, creating a ripple effect that impacts everything from cash flow and stress levels to the time you have available for actual, paying work.  

But chasing invoices doesn’t have to be an awkward, anxiety-inducing task. With a clear process, a professional approach, and an understanding of your rights, you can take control of your finances. This guide will walk you through a simple, effective system for chasing late invoices in the UK, complete with email templates you can adapt and use today.

Why Late Payments Are More Than Just an Annoyance

Before we get into the "how," it's important to understand the "why." A late payment isn't just an inconvenience; it's a direct hit to your business's health. It disrupts your cash flow, making it harder to pay your own bills and plan for the future.  

Every minute you spend tracking down payments is a minute you can't spend on client projects, finding new leads, or simply switching off. This is the "admin tax" that so many freelancers pay, and it can be a significant contributor to burnout. Taking this process seriously is the first step toward building a more resilient and profitable solo business.  

Before You Chase: Setting Yourself Up for Success

The best way to deal with a late invoice is to prevent it from happening in the first place. A few proactive steps can make a world of difference.

• Set Clear Payment Terms: Your payment terms should be crystal clear on every proposal and invoice. "Payment due within 30 days" is a standard and professional expectation. Don't leave it ambiguous. Having this in writing from the start makes any follow-up conversations much simpler.

• Know Your Rights: As a business in the UK, you have legal protections against late payments. The Late Payment of Commercial Debts (Interest) Act 1998 is your friend. This legislation allows you to claim interest and compensation if another business pays your invoice late. The statutory interest rate is 8% plus the Bank of England base rate. You can also charge a one-off debt recovery cost of between £40 and £100, depending on the invoice amount. You don't have to enforce this, but simply knowing it exists gives you leverage and confidence.

The 3-Step Chase Sequence: Professional Email Templates

When an invoice becomes overdue, it's time to act. The key is to be persistent but professional. This three-email sequence gradually escalates in firmness, giving your client every opportunity to pay.

Email 1: The Gentle Nudge (1-2 Days After Due Date)

Purpose: This is a polite, friendly reminder. Assume the invoice has simply been overlooked. The tone is helpful, not accusatory.

Subject: Following up on Invoice [Invoice Number]

Hi [Client Name],

Hope you’re having a productive week.

This is just a quick reminder that invoice [Invoice Number] for [Project Name] was due on. I’ve attached a copy for your convenience.

Please let me know if you have any questions.

Best regards,

Email 2: The Firm Reminder (7 Days After Due Date)

Purpose: The tone is still professional but more direct. You are clearly stating that the payment is now a week late and needs to be addressed.

Subject: Overdue Invoice [Invoice Number]

Hi [Client Name],

Following up on my previous email, invoice [Invoice Number] is now one week overdue. Could you please provide an update on when I can expect to receive payment?

The original due date was. Please let me know if there are any issues on your end.

Best regards,

Email 3: The Final Notice (14-21 Days After Due Date)

Purpose: This email is the final step before you consider more serious action. It is firm, references the payment terms in your contract, and mentions the late payment legislation. This often prompts immediate action.

Subject: URGENT: Invoice [Invoice Number] is Now Significantly Overdue

Hi [Client Name],

This requires your immediate attention. Invoice [Invoice Number], originally due on, is now more than two weeks overdue and remains unpaid.

As per our agreed terms, payments are due within 30 days of the invoice date. Please be aware that under the Late Payment of Commercial Debts (Interest) Act 1998, I am entitled to claim statutory interest and a fixed sum for debt recovery costs.

I would prefer to resolve this amicably. Please process the payment of [Invoice Amount] within the next 48 hours to avoid these additional charges being applied.

Regards,

The Power of a Good System

Manually tracking and chasing invoices works, but it consumes time and mental energy. As your business grows, having a robust system becomes essential. This is where a good CRM can transform your workflow. Instead of relying on calendar reminders and spreadsheets, a dedicated tool can help you see your entire financial picture at a glance.

For many UK sole traders, the right software isn't about complexity; it's about finding a good system allows you to connect your client communications, project timelines, and invoicing in one place. This creates a seamless process from proposal to final payment, giving you a clear view of your business's health. For those in client services, a dedicated can be the key to managing relationships and finances without the stress.

Ultimately, automating parts of your follow-up process frees you up to focus on what you do best. If you're interested in how this works, exploring some of the top follow-up strategies UK freelancers can automate is a great place to start.

Take Control of Your Cash Flow

Chasing late payments is an unfortunate reality of freelance life, but it doesn't have to be a source of constant stress. By setting clear terms, understanding your rights, and using a professional, systematic approach to your follow-ups, you can significantly reduce the time it takes to get paid.

Your time and expertise are valuable. Don't be afraid to stand up for that value by ensuring you are paid promptly and professionally for the work you deliver.