Letter Before Action for an Unpaid Invoice: UK Template

A letter before action is the formal letter you send a client who still has not paid, saying you will start a court claim if they do not pay by a set date. It states what is owed and why, how you worked out the amount, the deadline and what you will do next.

In England and Wales, courts expect one before a money claim, and the rules depend on who owes you. A company gets a reasonable time to reply, which the rules put at 14 days in a straightforward case. An individual, including a sole trader, gets 30 days, and your letter must go with forms set by the Pre-Action Protocol for Debt Claims.

This is general information, not legal advice, based on official pages read on 7 November 2026. It covers England and Wales; Scotland and Northern Ireland have their own procedures. For advice, talk to a solicitor or Business Debtline, a free debt advice charity for the self-employed and small businesses.

What is a letter before action?

It is the last formal step before court. Under the Practice Direction on pre-action conduct, part of the Civil Procedure Rules, the court expects the parties to have exchanged enough information to understand each other's position, try to settle and consider options such as mediation. Your letter starts that exchange.

Skipping it has a cost: the court takes non-compliance into account when managing the case and deciding costs, and can order the party at fault to pay costs or, for a claimant who wins, cut the interest awarded. Knowingly making a false statement in a pre-action letter can also lead to proceedings for contempt of court, so state only what you can prove.

Letter before action vs letter before claim

They are the same letter. "Letter before action" and "letter before claim" are the common names; the Pre-Action Protocol for Debt Claims calls it a "Letter of Claim". The content depends on who owes you.

Which rules apply: company or individual?

Who owes you	Rules to follow	Time to reply	What goes with the letter
A limited company or other business that is not a sole trader	Practice Direction – Pre-Action Conduct and Protocols	A reasonable time: 14 days in a straightforward case, no more than 3 months in a very complex one	Key documents, such as the invoice and contract
An individual, including a sole trader	Pre-Action Protocol for Debt Claims	30 days from the date at the top of the letter	A statement of account, the protocol's Information Sheet, Reply Form and a Financial Statement form

The protocol does not apply to business-to-business debts unless the debtor is a sole trader, nor to debts covered by another protocol, such as construction and engineering. Where no protocol applies, the Practice Direction does.

If a company owes you: what the letter must say

The Practice Direction asks for concise details of the claim:

• The basis of the claim: what was agreed, such as a contract, purchase order or accepted quote.
• A summary of the facts: what you delivered and when, the invoice, its due date and your reminders.
• What you want: payment of a stated sum by a stated date.
• How the amount is calculated: the invoice, plus any interest and fixed sum, line by line.

Share the key documents too. The company should reply saying whether it accepts the claim and, if not, why.

7 or 14 days? The Practice Direction's example for a straightforward case is 14 days, and Business Debtline's sample letter also gives at least 14 days from when the customer should receive it. Seven days is shorter than both, and not acting within a reasonable period can count as non-compliance.

Offer to talk. The parties should consider negotiation or mediation. Ignoring or refusing an invitation to it may be treated as unreasonable and lead to an order to pay extra costs.

If a sole trader or another individual owes you

The protocol asks for more. Among other things, the Letter of Claim should state:

• the amount of the debt, and whether interest or other charges are still being added;
• for a written agreement, its date, the parties and that the debtor can ask for a copy; for an oral one, who agreed what, when and where;
• how the debt can be paid, and how to get in touch to discuss payment options;
• where to send the Reply Form.

Enclose a statement of account, the Information Sheet and Reply Form (Annex 1) and a Financial Statement form (Annex 2). Download them from the protocol itself rather than retyping them.

The protocol also sets how and when:

• Date the letter near the top and post it that day or the next. Since 1 October 2026, also email it to the debtor's personal email address if you have one or, failing that, use another personal electronic contact you have.
• Wait 30 days from the date on the letter before claiming.
• If they reply that they are getting debt advice, wait at least 30 days from their Reply Form, or from sending documents they asked for, whichever is later.
• If they replied but you could not agree, give at least 14 days' notice before starting proceedings.

Interest and recovery costs you can claim

When another business pays late, GOV.UK says you can claim statutory interest of 8% plus the Bank of England base rate, unless your contract sets a different rate, plus a fixed sum for recovery costs, once per payment:

Amount of debt	Fixed sum
Up to £999.99	£40
£1,000 to £9,999.99	£70
£10,000 or more	£100

You can also claim reasonable recovery costs above the fixed sum. The base rate that counts is the one in force on 30 June or 31 December just before interest starts, fixed for that debt. Our UK late payment interest calculator finds it for your dates and adds the fixed sum; GOV.UK's late commercial payments guide has the official method.

Against a private individual, these rules do not apply: GOV.UK says interest in a money claim is usually 8%.

Letter before action template (company debtor)

Replace everything in brackets, delete what does not apply (the interest lines, if you do not claim interest) and enclose the documents you mention.

[Your name, or your name trading as your business name]
[Your address] | [Your email] | [Your phone]

[Date]

[Company's registered name, as shown at Companies House]
[Registered office address]
Company number: [number]
Sent by post and by email to [email address]

LETTER BEFORE ACTION
Unpaid invoice [INV-0000] for £[amount], due on [due date]

Dear [name],

Invoice [INV-0000] remains unpaid. This letter is sent under the
Practice Direction – Pre-Action Conduct and Protocols.

1. Background
On [date], [you accepted my quote / you issued purchase order ...] for
[description of the work] at £[price]. I delivered the work on [date]
and invoiced you on [date], due by [due date]. I sent reminders on
[dates]. [You have not raised any query about the work or the invoice.]

2. Amount due
Invoice [INV-0000]: £[amount]
Statutory interest under the Late Payment of Commercial Debts
(Interest) Act 1998, at [rate]% a year from [first day late] to the
date of this letter ([number] days): £[amount]
Fixed sum for recovery costs under the same Act: £[40 / 70 / 100]
Total at the date of this letter: £[total]
Interest continues at £[daily amount] a day until payment.

3. What I ask you to do
Please pay £[total], plus further interest, by [deadline, at least 14
days away] to [account name], sort code [00-00-00], account
[00000000], reference [INV-0000].

If you dispute any part of this claim, write to me by the same date
saying which part and why, with any documents you rely on. If you need
time to pay, or would like to try mediation, contact me before then.

4. If you do not pay or reply
If I receive neither payment nor a reply by [deadline], I intend to
start a court claim for these sums, further interest and my court
fees, without further notice.

Enclosed: invoice [INV-0000]; [accepted quote / purchase order /
contract]; my reminders of [dates].

Yours sincerely,
[Your name]

If your client is a sole trader or another individual, this template is not enough: add the protocol's details, give 30 days, and enclose the protocol's forms.

How to send it and keep proof

• Address it correctly: for a company, its registered name and registered office from Companies House, plus an email to your usual contact.
• Keep proof and the file together: a copy of the letter, the proof of posting, the sent email, the accepted quote, the invoice, your reminders and any reply. These are the key documents you may need to share.

What to do after the deadline

If they dispute the debt, read the reply, share documents and consider mediation. Both the Practice Direction and the protocol ask the parties to review their positions and narrow the issues before a claim.

If they ignore it, you can make a court claim, as GOV.UK's Make a court claim for money guide explains:

• Online or by post. Claim online with Make a money claim unless you do not know the amount, claim for more than one person or organisation, claim against 3 or more, either side has no address in England or Wales, or you claim against a government department. Otherwise use paper form N1.
• Interest. Include it in the claim. The online service only accepts interest at one rate from one date.
• Small claims. If the defendant files a defence, a claim worth up to £10,000 normally goes to the small claims track (CPR rule 26.9), and GOV.UK says that for £10,000 or less you must first attend free telephone mediation organised by the court.
• No response. You can ask the court for judgment, then for enforcement, which has its own fees.
• Breathing Space. You cannot claim if you are told the debtor is protected by the Breathing Space scheme.

Court fees depend on the amount claimed, including interest. You can usually recover them if you win, and help with fees exists for low incomes. On 7 November 2026, GOV.UK listed:

Claim amount	Fee
Up to £300	£35
£300.01 to £500	£50
£500.01 to £1,000	£70
£1,000.01 to £1,500	£80
£1,500.01 to £3,000	£115
£3,000.01 to £5,000	£205
£5,000.01 to £10,000	£455
£10,000.01 to £200,000	5% of the claim
More than £200,000	£10,000

The pre-action rules do not change the time limits for starting a claim, so get advice before letting an old debt wait longer.

Worked example: a £2,400 invoice to a company

Priya Shah, a freelance UX designer (sole trader, not VAT registered), redesigned a checkout for Corbel Retail Ltd for £2,400 on a quote Corbel accepted by email. All names are fictional. Invoice INV-0058, sent on 14 July 2026 with 30 days to pay, was due on Thursday 13 August.

Corbel never queried the work. Reminders on 17 August, 1 September and 15 September and a call on 22 September got no answer. Her terms set no interest rate of their own, so she can claim statutory interest. Companies House gives the registered name, Corbel Retail Limited, and a registered office in Leeds, not the shop address on her invoice.

Interest starts on 14 August 2026, so the base rate on 30 June 2026 (3.75%) sets it at 11.75% a year. On the date of her letter, Monday 12 October, the invoice is 60 days late:

Line	Working	Amount
Invoice INV-0058		£2,400.00
Statutory interest	£2,400 × 11.75% × 60 ÷ 365	£46.36
Fixed sum for recovery costs	Debt of £1,000 to £9,999.99	£70.00
Total on 12 October		£2,516.36

She posts and emails the letter that day, giving Corbel until Wednesday 28 October, with interest running at about 77p a day.

No reply. On 2 November she claims online. With interest to that day (81 days, £62.58) and the £70 fixed sum, her claim is £2,532.58, so the fee is £115. If Corbel defends, a claim this size would normally go to the small claims track, with court mediation first.

Before you send it: checklist

• You sent reminders and tried a call: see our payment reminder email templates and how to ask a client for payment.
• The invoice is right (see our UK invoice template and sole trader invoicing guide), and you have the accepted quote, purchase order or contract.
• You have the client's exact legal name and address. For a company, search Companies House for its registered name, number and registered office; it also shows insolvency information.
• You know which rules apply: company (Practice Direction) or individual (protocol, its forms, 30 days).
• Everything in the letter is true and provable, every client query is answered, and you are ready to follow through.

How Clodou helps

Clodou is an AI back office for freelancers and small teams. It does not write or send letters before action and does not give legal advice, but it helps with the steps around one:

• Who owes you. Ask "Who owes me money?": Clodou knows which invoices are draft, sent, paid and overdue.
• Reminders first. It prepares payment reminders, and an owner or admin approves each before it is emailed.
• A record. Every action, including each reminder sent, is in the Activity log, so you can list your reminders in the letter.
• The interest invoice. Get the figures from the calculator, then one sentence makes the invoice: "Invoice Corbel Retail Ltd £46.36 statutory interest on INV-0058 and a £70 fixed sum for recovery costs, due on receipt." Clodou numbers it in your sequence and never invents an amount.

Clodou does not calculate statutory interest itself. Every new workspace starts with a 14-day Team trial, no card needed; after that, Free includes up to 5 clients and 20 AI actions a month, Solo is $29 and Team $79 a month per workspace.

Frequently asked questions

Is a letter before action a legal requirement?

The Civil Procedure Rules expect the right pre-action steps before a claim, and the court can sanction a party who skipped them, for example on costs or interest. This is general information, not legal advice: for your case, ask a solicitor.

Should I give 7 or 14 days?

For a company, the Practice Direction's example for a straightforward case is 14 days. For an individual, including a sole trader, the protocol gives 30 days from the date on the letter.

Can I send a letter before action by email?

For a company, the Practice Direction sets no method; email and post, with proof of both, is sensible. For an individual, the protocol says post, plus personal email if you have it.

Do I need a solicitor?

GOV.UK explains how to claim yourself, says you may need legal advice if your claim is complex, and points to Advicenow and Citizens Advice for help. Business Debtline gives free debt advice to self-employed people and small businesses.

Does this apply in Scotland or Northern Ireland?

No. GOV.UK says there is a different process to make a court claim in Scotland and in Northern Ireland.

Sources

Checked on 7 November 2026:

• Justice.gov.uk, Practice Direction – Pre-Action Conduct and Protocols
• Justice.gov.uk, Pre-Action Protocol for Debt Claims and the amendment in force from 1 October 2026
• Justice.gov.uk, Civil Procedure Rules Part 26 (rule 26.9)
• GOV.UK, Make a court claim for money and HM Courts and Tribunals Service, Make a money claim
• GOV.UK, Late commercial payments: charging interest and debt recovery
• Legislation.gov.uk, Late Payment of Commercial Debts (Interest) Act 1998, section 5A and Rate of Interest (No. 3) Order 2002, article 4
• Bank of England, Official Bank Rate history
• GOV.UK, Get information about a company (Companies House)
• Business Debtline, Debt still outstanding after reminders (sample letter) and About us