Use cases
Client not paying an invoice? What UK businesses can do
Last updated: June 2026
What are the first steps if a client ignores your invoice?
Start by confirming the basics: the amount is genuinely due, the agreed payment date has passed, and there is no unresolved dispute. Re-send the invoice with a short, businesslike reminder and a statement of account so the position is unambiguous. Keep every message — a clear, dated communication trail matters later.
How do reminders fit into the process?
Most overdue invoices are resolved by a polite, firm sequence of reminders that make the deadline and the consequences clear. Reminders also build the evidence trail: they show you gave the debtor a fair chance to pay before any escalation, which is what the courts expect parties to do.
What interest and compensation can you add?
For commercial debts between businesses, you can usually claim statutory interest and a fixed compensation sum under the Late Payment of Commercial Debts (Interest) Act 1998. Statutory interest is 8 percentage points above the Bank of England base rate — currently 11.75% (3.75% base rate as of June 2026) — and runs from the day after payment was due. Fixed compensation depends on the size of the debt:
| Debt size | Fixed compensation |
|---|---|
| Up to £999.99 | £40 |
| £1,000 to £9,999.99 | £70 |
| £10,000 or more | £100 |
When should you send a Letter Before Action?
If reminders do not work, a Letter Before Action (LBA) is the formal pre-court step. It sets out the debt, what you want, and a deadline to respond. For company debtors the courts expect reasonable pre-action conduct; for individuals and sole traders the Pre-Action Protocol for Debt Claims sets specific steps and timescales. WolfX helps you prepare an LBA from your evidence — you stay in control of whether and when it is sent.
What evidence pack should you keep?
Keep the contract or agreed terms, the invoice, proof of delivery or acceptance, your full communication history, any payment promises, the dispute status, and verified debtor details from Companies House. WolfX stores these together in an Evidence Vault so the account of the debt is clear and easy to review.
When should you consider a solicitor or court review?
For contested, complex, or higher-value debts, many businesses take legal advice before escalating. Court action is a last resort. Organising your evidence first makes any solicitor instruction or court-readiness review faster and helps you judge whether the claim is worth pursuing.
How does WolfX help — and what does it not do?
WolfX helps you turn overdue-invoice data into an organised recovery workflow: verified debtor details, a clear timeline, a Letter Before Action, and a Court Readiness Pack, all backed by an Evidence Vault. WolfX is software. It is not a law firm, debt collection agency, court, or payment processor. It does not collect money, does not file court claims, does not create CCJs, and does not provide legal advice.
WolfX is software for evidence-backed invoice recovery workflows. WolfX is not a law firm, debt collection agency, court, or payment processor. This site provides general information, not legal advice.
Sources
- Late commercial payments: charging interest and debt recovery — GOV.UK
- Late Payment of Commercial Debts (Interest) Act 1998 — legislation.gov.uk
- Bank of England official Bank Rate — Bank of England
- Practice Direction on Pre-Action Conduct and Protocols — Ministry of Justice (Civil Procedure Rules)
- Pre-Action Protocol for Debt Claims — Ministry of Justice (Civil Procedure Rules)
Frequently asked questions
What should I do if a client does not pay an invoice?
If a client has not paid an invoice in the UK, confirm the amount is genuinely due and the payment date has passed, send a clear reminder and a statement of account, then escalate with a Letter Before Action that sets a deadline. You can usually add statutory interest and a fixed compensation sum. WolfX helps you organise this; it is not a law firm and does not give legal advice.
Can I charge interest on a late invoice?
For commercial debts you can usually claim statutory interest at 11.75% (8% above the 3.75% Bank of England base rate as of June 2026) plus a fixed compensation sum, from the day after payment was due.
Does WolfX chase my client for me?
No. WolfX is software that helps you prepare evidence-backed recovery documents and workflows. It does not act as a debt collection agency and does not contact debtors as a collector.
Does WolfX file claims or create CCJs?
No. WolfX does not file court claims and is not a law firm, court, or regulated collector. WolfX prepares evidence-backed documents — Letters Before Action and Court Readiness Packs — that you or your solicitor can review. Any decision to start a court claim, and the filing itself, stays with you or your legal adviser.
Turn an unpaid invoice into an organised recovery workflow.