You have chased three times. The invoice is three weeks overdue. The client has gone silent.
Polite reminders are not working. You need something stronger — something that signals you are serious and you know your rights.
This is where a letter before action comes in.
A letter before action (also called a letter of claim) is the formal step before you take a client to small claims court. It is not a threat. It is a legal notice. It tells the client: pay now, or I will file a claim.
Most clients pay when they see a letter before action. Nobody wants a court filing on their record. Nobody wants to pay interest, recovery costs, and legal fees on top of the original debt.
This guide gives you two copy-paste UK letter before action templates for unpaid freelance invoices, a worked GBP example with statutory interest and recovery costs, an evidence checklist, and clear next steps if the client still does not pay.
What a letter before action is (and when to send one)
A letter before action is a formal written demand for payment. It is the last step before you start legal proceedings.
In England and Wales, courts expect you to give the debtor a reasonable chance to pay before you file a claim. Sending a letter before action shows you followed the proper process.
When to send a letter before action:
✓ The invoice is at least 14–21 days overdue
✓ You have sent two or three polite reminders and the client has not replied or paid
✓ The client has ignored your reminders or given vague promises without payment
✓ The debt is over £100 (for smaller amounts, it may not be worth the effort)
✓ You have a clear paper trail — signed contract or agreement, invoice, proof of delivery
Do not send a letter before action if:
✓ The client is actively engaging and negotiating payment terms
✓ There is a genuine dispute about the quality or scope of work (resolve the dispute first)
✓ You have not sent any reminders yet (start with polite emails first — see our how to chase a late invoice guide)
A letter before action is not a bluff. Only send it if you are prepared to follow through with a court claim if the client still does not pay.
Letter before action vs letter of claim
These terms mean the same thing in practice. Letter before action is more common in general civil debt cases. Letter of claim is the formal term in the Pre-Action Protocol for Debt Claims.
Use whichever term you prefer. Most freelancers say "letter before action."
England and Wales vs Scotland
This guide is for England and Wales. The Late Payment of Commercial Debts Act 1998 applies across the UK, but pre-action procedures differ.
In Scotland, the equivalent is a formal written demand, but Scottish court procedures (Simple Procedure, Sheriff Court) are different. If your client is in Scotland, check the Scottish Courts and Tribunals Service guidance or consult a solicitor.
The Pre-Action Protocol for Debt Claims — what you need to know
The Pre-Action Protocol for Debt Claims is a set of rules that apply before you start a court claim for money owed. It is designed to encourage early settlement and avoid unnecessary court cases.
When it applies
The protocol applies mainly when you are claiming from an individual — including consumers and sole traders.
For business-to-business debts (limited companies), the protocol is less strict. You are still expected to act reasonably and give the debtor a chance to respond, but the formal protocol steps are not mandatory.
In practice: Always send a clear letter before action with reasonable time to respond (7–14 days), whether the debtor is an individual or a business. This is good practice and protects you if the case goes to court.
What the protocol requires
If the protocol applies (individual debtor), you must:
✓ Send a letter of claim with full details of the debt
✓ Give the debtor at least 30 days to respond (not just 7 days)
✓ Provide copies of key documents (invoice, contract, proof of delivery)
✓ Consider any reasonable request for more time or information
For limited company B2B debts, you can give 7–14 days to pay, which is standard practice.
Disclaimer: This is a simplified summary for UK freelancers chasing commercial debts. If the debt is large, complex, or involves a consumer, consult a solicitor. This guide is not legal advice.
Source: Pre-Action Protocol for Debt Claims (justice.gov.uk)
What to include in your letter before action — checklist
A strong letter before action is clear, factual, and professional. It should include:
✓ Your contact details — name, address, email, phone
✓ Debtor's name and address — the client or business who owes you
✓ Invoice details — invoice number, date, due date, and amount
✓ Description of work — what you delivered or services you provided
✓ Payment demand — the total amount owed, including interest and recovery costs
✓ Breakdown of interest — statutory interest calculation from due date to letter date
✓ Breakdown of recovery costs — fixed debt recovery fee (£40, £70, or £100)
✓ Deadline for payment — clear date (7–14 days for B2B, 30 days for individuals)
✓ Warning of court action — state you will issue proceedings if unpaid
✓ List of documents attached — invoice, contract, proof of delivery, previous reminders
Keep the tone formal but not aggressive. You are stating facts, not making threats.
How to calculate statutory interest and recovery costs
UK law gives you the right to claim statutory interest and fixed debt recovery costs when a commercial invoice goes unpaid. You do not need to write these into your contract beforehand — the law gives you the right automatically.
Statutory interest
You can charge interest at the Bank of England base rate plus 8%.
As of September 2026, the base rate is 4.75%, so your statutory interest rate is 12.75% per year.
How to calculate it:
Interest = (Invoice amount × Interest rate × Days overdue) ÷ 365
Example:
- Invoice amount: £1,400
- Interest rate: 12.75% per year (0.1275)
- Days overdue: 28 days (from due date to letter date)
Interest = (£1,400 × 0.1275 × 28) ÷ 365
Interest = £13.65
Round to the nearest penny. Most freelancers round to £14 for simplicity.
Fixed debt recovery costs
You can claim a fixed fee for the cost of recovering the debt. The amount depends on the invoice size:
| Invoice amount | Recovery cost |
|---|---|
| Up to £999.99 | £40 |
| £1,000–£9,999.99 | £70 |
| £10,000+ | £100 |
Example: For a £1,400 invoice, you claim £70 in recovery costs.
Total demand
Add the three amounts together:
- Original invoice: £1,400.00
- Statutory interest (28 days): £14.00
- Debt recovery cost: £70.00
- Total due: £1,484.00
This is the amount you demand in your letter before action.
Source: GOV.UK — Late commercial payments: charging interest and debt recovery
Check the current base rate
Interest rates change. Before you send your letter, check the current Bank of England base rate at bankofengland.co.uk.
Add 8% to get your statutory rate. Example: base rate 5% + 8% = 13% per year.
Copy-paste letter before action template — full version
This is a formal letter before action for an unpaid freelance invoice. Use it after polite reminders have failed.
Adapt the names, dates, amounts, and invoice details. Keep the structure and tone.
[Your Name]
[Your Business Name (if applicable)]
[Your Address]
[Your Email]
[Your Phone Number]
Date: [Date you send this letter]
To:
[Client Name or Business Name]
[Client Address]
RE: Letter Before Action — Unpaid Invoice [Invoice Number]
Dear [Client Name],
I am writing to you regarding the outstanding invoice [Invoice Number] for £[Amount], which was due on [Due Date] and remains unpaid.
Details of the Debt
On [Invoice Date], I issued invoice [Invoice Number] for £[Amount] for [brief description of work, e.g. "website design services as agreed in our contract dated [Contract Date]"].
The invoice was due for payment on [Due Date]. As of today, [Days Overdue] days have passed since the due date, and I have not received payment.
I have sent you [number] reminders on the following dates:
- [Reminder 1 Date] (first reminder by email)
- [Reminder 2 Date] (second reminder by email)
- [Reminder 3 Date] (final reminder by email)
You have not responded to these reminders or paid the invoice.
Amount Now Due
Under the Late Payment of Commercial Debts (Interest) Act 1998, I am entitled to claim statutory interest and debt recovery costs.
The total amount now due is:
| Item | Amount |
|---|---|
| Original invoice amount | £[Invoice Amount] |
| Statutory interest ([Days Overdue] days at [Interest Rate]% per year) | £[Interest] |
| Debt recovery costs | £[Recovery Cost] |
| Total due | £[Total] |
Payment Demand
I require payment of £[Total] within [7 or 14] days of the date of this letter — by [Deadline Date].
Payment should be made by bank transfer to the account details shown on the original invoice (see attached).
Court Proceedings
If I do not receive full payment by [Deadline Date], I will issue court proceedings against you without further notice. This will result in additional costs, including court fees and potential legal costs, which you will be liable to pay.
I would prefer to resolve this matter without court action. If there is a genuine reason for non-payment, or if you dispute the debt, please contact me immediately to discuss.
Documents Enclosed
I enclose copies of the following documents:
✓ Invoice [Invoice Number] dated [Invoice Date]
✓ Contract or agreement dated [Contract Date] (if applicable)
✓ Proof of delivery / completion (if applicable)
✓ Copies of previous payment reminders
I trust you will treat this matter with the urgency it requires. If you have any questions or wish to discuss payment terms, please contact me by [Deadline Date].
Yours sincerely,
[Your Name]
[Your Business Name]
[Your Email]
[Your Phone Number]
Enclosures:
- Invoice [Invoice Number]
- Contract dated [Contract Date]
- Proof of delivery
- Copies of previous reminders
Copy-paste letter before action template — short 7-day version (B2B)
This is a shorter version for limited company B2B debts where you have already sent multiple reminders. Use this if you want a 7-day deadline.
[Your Name]
[Your Business Name]
[Your Address]
[Your Email]
[Your Phone Number]
Date: [Date]
To:
[Client Business Name]
[Client Address]
RE: Final Demand — Invoice [Invoice Number] — £[Total] Due
Dear [Client Name],
This is a formal letter before action regarding unpaid invoice [Invoice Number] for £[Invoice Amount], which was due on [Due Date].
Despite [number] previous reminders, this invoice remains unpaid.
Amount Now Due:
| Item | Amount |
|---|---|
| Original invoice | £[Invoice Amount] |
| Statutory interest ([Days] days at [Rate]% p.a.) | £[Interest] |
| Debt recovery cost | £[Recovery Cost] |
| Total due | £[Total] |
Payment Deadline: [Deadline — 7 days from today]
If I do not receive payment of £[Total] by [Deadline Date], I will issue court proceedings via Money Claim Online without further notice. You will be liable for additional court fees and legal costs.
Bank details are on the original invoice (attached).
If you dispute this debt, contact me immediately.
Yours sincerely,
[Your Name]
[Your Email] | [Your Phone]
Enclosed: Invoice [Invoice Number]
Worked example — £1,400 invoice with interest and recovery cost
Let's walk through a realistic example.
Scenario:
- You are a freelance designer
- You invoiced £1,400 for a brand identity project
- Invoice date: 10 August 2026
- Due date: 24 August 2026 (Net 14)
- Today's date: 9 September 2026 — invoice is 16 days overdue
- You sent reminders on 25 August, 1 September, and 7 September
- No reply, no payment
Calculation:
Statutory interest:
- Invoice amount: £1,400
- Days overdue: 16 days (from 24 August to 9 September)
- Interest rate: 12.75% per year (BoE base rate 4.75% + 8%)
Interest = (£1,400 × 0.1275 × 16) ÷ 365
Interest = £7.80 (round to £8)
Debt recovery cost:
- Invoice is £1,400, which falls in the £1,000–£9,999.99 band
- Recovery cost: £70
Total demand:
- Original invoice: £1,400.00
- Statutory interest: £8.00
- Debt recovery cost: £70.00
- Total due: £1,478.00
You demand £1,478 in your letter before action, with a deadline of 23 September 2026 (14 days from 9 September).
What to attach to your letter — evidence checklist
Send copies of these documents with your letter before action:
✓ Invoice — the original unpaid invoice with clear due date and amount
✓ Contract or agreement — signed contract, proposal acceptance email, or SOW
✓ Proof of delivery — evidence you completed the work (files delivered, emails, screenshots, project handoff confirmation)
✓ Previous reminders — copies of the polite chase emails you sent (optional but helpful)
Do not send original documents — send copies. Keep originals safe in case you need them for court.
If you did not have a written contract, include any email trail showing the client agreed to the work and the price.
Tip: Attach documents as PDFs, not editable Word files. PDFs cannot be tampered with.
How to send a letter before action — email and post
Send your letter before action by email and by post. This gives you the best proof of delivery.
Send as a PDF attachment. Subject line: "Letter Before Action — Invoice [Invoice Number]"
Email is fast and creates an instant paper trail. But the client can claim they never saw it or it went to spam.
Recorded post
Send by Royal Mail Signed For or Special Delivery. Both provide proof of delivery.
Signed For (£2.60): Recipient signs for the letter. You get a tracking number and proof of delivery online.
Special Delivery Guaranteed by 1pm (from £7.95): Faster, with compensation if it goes missing. Use this for high-value debts.
Keep the receipt and tracking number. If the case goes to court, you need proof you sent the letter and when.
Tip: Date the letter the day you post it, not the day you wrote it. If the client claims they did not receive it in time, the postmark and tracking prove when it was sent.
What happens after you send the letter — three outcomes
Outcome 1 — They pay
Job done. Confirm receipt of payment. Check your bank account to make sure the full amount (invoice + interest + recovery cost) has cleared.
Send a short confirmation email:
Hi [Name],
Payment of £[Total] received on [Date]. Invoice [Invoice Number] is now settled in full. Thank you.
Mark the invoice as paid in your records. Move on.
Outcome 2 — They dispute the debt
The client replies saying they do not owe the money, or they are unhappy with the work, or they claim you never delivered.
What to do:
✓ Ask for written details of their dispute
✓ Review your contract, invoice, and delivery proof
✓ If the dispute is genuine, try to resolve it (offer revisions, clarify scope, or agree a reduced amount)
✓ If the dispute is a stalling tactic, restate the facts and hold firm
If you cannot resolve the dispute, you may need to proceed to court. The court will decide who is right.
Tip: Disputes about quality or scope should have been raised when the work was delivered, not three weeks after the invoice was due. Late disputes are often excuses.
Outcome 3 — They ignore the letter
The deadline passes. No payment. No reply.
Now you escalate to court proceedings. The next step is filing a claim via Money Claim Online (for debts up to £100,000).
Do not send another reminder. You have done your part. Empty threats weaken your position. If you set a deadline and they miss it, follow through.
What if they promise to pay but do not?
This is common. The client replies: "Sorry for the delay. I will pay you this week."
Then they do not.
What to do:
✓ Get a specific date in writing. Reply: "Thanks. Please confirm the exact date you will send payment."
✓ Set a firm deadline. "I need payment by [Date]. If I do not receive it by then, I will issue court proceedings as stated in my letter before action."
✓ Do not give endless extensions. One promise, one deadline, then escalate.
Clients who keep promising but never paying are stalling. Stop negotiating and start the court claim.
Brief next steps — Money Claim Online and small claims court
If the deadline passes and the client still has not paid, you file a court claim.
For debts under £10,000, you use the small claims track. You do not need a solicitor. The process is designed for non-lawyers.
Money Claim Online
You file your claim at gov.uk/make-court-claim-for-money.
What you need:
✓ Your details (name, address)
✓ Debtor's details (name, address — must be accurate)
✓ Amount you are claiming (invoice + interest + recovery costs)
✓ Details of the debt (what you did, when, why they owe you)
✓ Copies of evidence (invoice, contract, letter before action)
Court fees:
Fees depend on the claim amount. Examples:
- £300 or less: £35
- £300.01–£500: £50
- £500.01–£1,000: £70
- £1,000.01–£1,500: £80
- £1,500.01–£3,000: £115
- £3,000.01–£5,000: £205
- £5,000.01–£10,000: £455
If you win, the court usually orders the debtor to pay your court fees on top of the debt.
Source: GOV.UK — Make a court claim for money
What happens next
Once you file the claim, the court sends the claim form to the debtor. They have 14 days to respond.
Three outcomes:
- They pay. Claim settled. You get your money.
- They defend. The court sets a hearing. You both present evidence. The judge decides.
- They ignore it. You win by default (called a default judgment). You can then enforce the judgment (bailiffs, charging order, etc.).
Tip: Winning a judgment does not guarantee payment. If the debtor is a limited company with no assets, or if they have gone bust, you may not recover anything. Check Companies House before filing to see if the company is still active.
Do I need a solicitor?
Not for small claims. The process is simple. Most freelancers handle it themselves.
If the debt is over £10,000 or the case is complex, consider legal advice. But for straightforward unpaid invoices under £10,000, you can do it yourself.
When not to bother with a letter before action
Sometimes it is not worth the time or stress.
Skip it if:
✓ The debt is under £100 — your time is worth more
✓ The client is a limited company that has gone bust — check Companies House; if they are in liquidation, you will not recover anything
✓ The client has no assets and is clearly insolvent — winning a judgment is pointless if they cannot pay
✓ You do not have a clear paper trail — no contract, no invoice, no proof of work done
Write off small debts. Learn the lesson. Tighten your contracts and payment terms for next time.
For larger debts (£500+), pursue them. You have the law on your side.
Common mistakes that weaken your letter before action
Vague wording. Do not write "You owe me money." State the invoice number, amount, due date, and days overdue.
No deadline. Always give a clear deadline. "Please pay as soon as possible" is not a deadline. Write "Payment due by 23 September 2026."
Apologising. Do not write "Sorry to bother you, but..." You are not bothering them. They owe you money. Stay professional, not apologetic.
Empty threats. Do not threaten court action unless you are prepared to follow through. If you set a deadline and they miss it, file the claim. Otherwise, you lose credibility.
Wrong address. Make sure the client's address is correct. If the letter goes to the wrong place, it weakens your case. Check Companies House for registered office addresses.
No interest or recovery cost. Always include the statutory interest and recovery cost breakdown. Many clients pay when they see the total climbing.
Sending too early. Do not send a letter before action on day 1. Send polite reminders first. A letter before action should come after you have tried the friendly approach and it has failed.
Related guides
Before you send a letter before action, you need to have chased politely first. Read our how to chase a late invoice guide for day-by-day email templates and your statutory rights under UK law.
For a complete UK invoice template with clear payment terms, read our freelance invoice template guide.
To stop late payments before they happen, read our guide on invoice payment terms for UK freelancers.
Before you invoice, you need a signed contract. Read our freelance contract template guide for clause-by-clause wording and payment terms.
For deposit invoices that protect your cashflow, read our deposit invoice template guide.
SoloPad helps UK freelancers track unpaid invoices, automate reminders, and generate letters before action — so you spend less time chasing and more time working. Pricing: Starter £5/month, Solo £12/month, Pro £29/month. Try free for 30 days. Questions? info@solopad.io
Sources and references
Research, official guidance, and keyword data used while writing this guide:
- GOV.UK — Late commercial payments: charging interest and debt recovery
- GOV.UK — Make a court claim for money
- Ministry of Justice — Pre-Action Protocol for Debt Claims
- Bank of England — Bank Rate (base rate 4.75% as of September 2026)
- Royal Mail — Signed For and Special Delivery services
- Companies House — Check if a company is active
- Ubersuggest UK keyword data (location ID 2826, 9 September 2026): "letter before action" (2,900/mo, SD 21), "letter before action template uk" (210/mo, SD 17), "letter before action sample" (1,600/mo, SD 16), "letter before action small claims" (480/mo, SD 22), "unpaid invoice" (260/mo, SD 18)
Method note: SERP competitors reviewed (not copied): Citizens Advice (consumer goods focus), Garfield AI (solicitor AI tool), Practical Law, Which?, GOV.UK Pre-Action Protocol PDF. Letter before action templates, interest calculations, evidence checklist, and UK freelancer decision trees are original SoloPad editorial content.
This article is for general education. It is not legal, tax, or accounting advice. Late payment law, court procedures, and debt recovery practices may vary by case and jurisdiction. When in doubt, consult a solicitor.