When you’re self-employed, not getting paid on time can throw everything off.
Unlike bigger businesses, you probably don’t have a cash buffer or finance team to chase things up – it’s on you.
So if a client stops responding, or flat-out refuses to pay, what can you do?
This guide walks through the steps you can take if a client doesn’t pay, the legal options available, and how to protect yourself going forward.
1. Check the basics first
Go back and double-check the invoice. Is it accurate? Was it sent to the right person? Does it clearly state the amount due, the payment deadline, and your bank details?
If the client has a formal process — such as needing a PO number or using an invoice portal — ensure you followed it. An invoice that doesn’t match their system can be rejected without warning.
You can also check if they pay on fixed cycles (such as end-of-month batches), which may cause delays even if everything is correct.
2. Chase professionally (but persistently)
Once the payment deadline has passed, send a polite reminder. Keep it professional, but don’t be afraid to follow up regularly. Try this sequence:
- Day 1 after due date: Friendly reminder email
- Day 7: Follow-up with invoice attached again
- Day 14+: Phone call if possible, or a more direct email
Make it easy for them to pay — include the invoice again, with clear bank details or payment options.
Also, check your spam or junk folder for any automated replies or remittance advice that may have been missed.
3. Add late payment interest
You’re legally allowed to charge interest on overdue invoices under the Late Payment of Commercial Debts (Interest) Act. This applies to business-to-business work, including self-employed services.
The standard rate is 8% above the Bank of England base rate, plus a fixed fee (£40, £70 or £100 depending on invoice size). You don’t need to state this on the original invoice – it’s a statutory right. But adding it later can sometimes motivate a client to pay quickly.
4. Send a final warning
If you’ve chased a few times and still heard nothing, send a formal ‘letter before action’. This is your final notice before escalating to legal action. It doesn’t need to be written by a solicitor.
It should state the total amount due, any interest or late fees you’re claiming, and the deadline for payment (usually 7–14 days). You can also warn that you’ll begin legal proceedings if it remains unpaid.
See template wording at: Rocket Lawyer – Letter Before Action templates
5. Consider legal action or small claims
If the client still won’t pay, you have the option to escalate the matter formally. For unpaid invoices under £10,000, you can usually make a claim through the Money Claim Online service (the modern version of the small claims court).
It’s designed to be used without a solicitor. There’s a fee to submit a claim (based on the amount owed), but this can be added to your claim. If successful, you’ll get a County Court Judgment (CCJ) that may force the client to pay up, or impact their credit record if they don’t.
More info at: GOV.UK – Make a court claim for money
6. Use a debt recovery service
If you don’t want to go through the legal process yourself, you can use a debt collection agency. Some work on a ‘no win, no fee’ basis – others charge a percentage of what they recover. Make sure they’re regulated by the Financial Conduct Authority.
We’ve explained how to choose one and what to expect in our full guide to using a debt recovery service.
Agencies vary in their approach — some are more diplomatic, others more forceful — so choose one that matches the tone you want to set. And keep in mind: the threat of a professional collector is often enough to prompt payment.
7. Learn from it, and protect yourself in future
One late payment might be unavoidable. But if it keeps happening, it’s time to change how you do things.
To reduce the risk of non-payment:
- Ask for part-payment upfront (especially for new clients)
- Use written contracts with clear terms
- Shorten your payment terms if needed (e.g. 7 or 14 days)
- Include a late payment clause — even if you never enforce it
- Consider using payment platforms or deposits for high-risk clients
See: Bookkeeping basics for the self-employed and setting up a business bank account to stay organised and avoid cash flow issues.
You might also want to read our guide on using simplified expenses to keep your accounting streamlined.
Final thoughts
Chasing late payments is one of the most frustrating parts of being self-employed. But you’re not powerless — the law’s on your side, and there are clear steps you can take to get what you’re owed. Stay calm, act early, and be clear about consequences.
And if someone’s a repeat offender? Don’t be afraid to walk away. Not all clients are worth it.
From £37.50/m
From £49/m