Late payment is part of the job when you work for yourself, but that doesn’t mean you have to accept it. Whether it’s a client going quiet or a big client dragging its heels, unpaid invoices can cause real problems for your cash flow.
If you’ve sent the initial invoice, checked that it contained all the correct details, chased up once or twice, and still haven’t been paid, this guide walks you through your options – from emailing friendly reminders to firmer action.
It’s aimed at UK sole traders, but most of it applies to anyone chasing payment from another business.
Late payment is more common than you think
Most self-employed individuals have experienced at least one client who delayed payment. Some do it because they’re disorganised. Others do it deliberately. And when you’re not on a payroll, even a short delay can leave you stuck.
At ByteStart, we have experienced every type of late payment issue imaginable over the past twenty years – from politely nudging a client to pay, to making a loss when a client goes out of business, and even once calling in our debt collection partner to resolve the problem.
The government has been paying attention to this, and a new late payment crackdown is scheduled to take effect in 2026.
As much as we want the new crackdown to make a difference, late payment remains a persistent problem for small firms, especially when dealing with larger, more powerful clients.
How to reduce the chances of it happening at all
The best time to deal with a late payer is before they even become one. That means:
- Getting your payment terms in writing before you start
- Making sure your invoice includes a clear due date (for example, “Payment due within 14 days”)
- Sending the invoice straight away, not a week after you finished
- Including your bank details and payment reference so there’s no excuse
- Making sure you have the correct email and phone number for the person or firm you’re invoicing
If you’re not confident about your invoicing, download one of our free invoice templates for sole traders. There are two options: one for VAT-registered businesses and one for those who aren’t.
They’ve missed the deadline. What now?
Once the payment date has passed, try not to panic. You’ve got a few tools to work with. Start with the lightest touch (this usually works) and work your way up for more difficult cases:
1. Quick reminder
A brief, polite email is most effective. You could say something like:
Hi [Name], just checking in on invoice [number] which was due on [date]. Let me know if you need me to resend anything. Thanks.
Attach the invoice again. No pressure at this point – you’re just prompting.
2. Follow up if there’s no reply
Wait a few more days, then send a second message. This one can be firmer:
The invoice from [date] is now [X] days overdue. Can you confirm if payment has been scheduled? I’d appreciate an update.
3. Call them
If they’re still silent, pick up the phone. It’s harder to ignore a real person. Ask when you can expect payment, and record their response.
4. Mention late payment fees (if you need to)
If you’re dealing with another business, you have the legal right to charge interest and late payment compensation. This is set out under the Late Payment of Commercial Debts Act.
You don’t need to mention this in your contract – it applies automatically if you’re a sole trader working for a business. You’re allowed to charge:
- 8% interest above the Bank of England base rate
- A fixed fee of £40, £70 or £100 depending on how much you’re owed
It won’t win you any popularity contests—and you may feel awkward mentioning this to clients—but it usually yields results.
5. Final reminder or warning
Still no payment? Send a final message outlining your position. Make it clear you’re serious:
- State the amount owed and when the work was completed
- Say that you’ll consider further action if it’s not paid within X days
- Give them one last chance to sort it out
What to do if they still don’t pay
If you’ve done all of the above and you’re still chasing, you have a few options:
- Use a debt collection agency (they take a cut, but can be effective)
- Start a small claim through Money Claim Online
- Log the unpaid invoice in your records and move on if it’s not worth pursuing
Whatever you do, keep a paper trail. Save all emails and reminders in case you need them later.
Can software help with this?
Yes. Some accounting tools will automatically track when invoices are due, send reminders, and flag late payments. You can even set up auto-reminders if you’d rather not chase manually.
See our guide to the best accounting software for sole traders to compare your options.
And if it’s a regular problem?
If one client is always late, you’ve got a decision to make. You could shorten your payment terms, request payment in part upfront, or cease working with them altogether. No job is worth being left out of pocket over and over.
Quick tips to finish
- Be polite but persistent
- Don’t let invoices sit unpaid for weeks before chasing
- Know your legal rights – and don’t be afraid to use them
- If it’s a large job, ask for a deposit before you begin
And finally – keep your invoicing tight. If you use online software, you’ll immediately know if a payment is late. If you need help, start with our invoice templates and build from there.
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