How to Chase Late Payments as a Tradesperson.

Chase as soon as it's overdue. Start with a polite reminder: the invoice number, amount, due date, how to pay, and a request to tell you if anything's in dispute. Then follow the same steps every time, below.

For business customers, the law lets you add interest and a fixed recovery amount. For homeowners, it doesn't.

• Overdue: unpaid after the due date.
• Payment terms: how long the customer has to pay, like 14 or 30 days.
• Final demand: a formal last letter before you take further action.
• Statutory interest: interest the law lets you add to late payments from business customers.
• Base rate: the Bank of England's interest rate, used to work out late payment interest.
• Money claim: asking the court to order someone to pay you. It can be done online.
• Retention: part of the payment held back on a building job until later, often until defects are fixed.

The same steps every time:

1. Check.It arrived, it's due, the bank details are right, and there's no dispute.
2. Remind.Send the invoice again, with a new date to pay by.
3. Call.Note who said what, and by when.
4. Formal letter.A proper final demand.
5. Decide.Weigh up the cost, your evidence and the relationship before going further.

• Quote the invoice number, amount and due date
• Attach the invoice again
• Note every contact and promise
• Ask straight away about any dispute
• Never threaten action you won't take
• Check the rules before adding interest or costs
• Stop giving them credit, if your terms allow
• Get advice before court

From business customers, usually yes. If you didn't agree a date, payment is late 30 days after they got the invoice or you did the work, whichever is later. Agreed business payment terms should usually be no longer than 60 days, unless longer is fair to both sides.

Once it's late, you can claim interest at 8% plus the Bank of England base rate, plus a fixed amount towards recovery costs, once per payment: £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more. You can also claim reasonable extra costs of recovering the debt.

These don't apply to homeowners. Consumer debts, construction contracts and disputed work can need different handling.

It may. The Commercial Payments Bill went into Parliament in May 2026. By 27 October 2026 it had passed the House of Lords and was waiting for its second reading in the House of Commons. As proposed, it would cap business payment terms at 60 days, stop businesses contracting out of late payment interest, ban retention clauses in construction contracts, and give the Small Business Commissioner more power over payment disputes.

It isn't law yet, and the details may change. Use the rules in force on the date of your contract.

Everything in one place:

• The accepted quote or contract
• Any changes
• Proof you did the work
• The invoice and reminders
• Their replies and any dispute
• Payments so far
• How you worked out anything added