Letter before action template for unpaid invoices (UK)
A clear letter before action template for UK trade businesses, plus the exact steps to follow before small claims.
Letter before action template for unpaid invoices (UK)
A letter before action (LBA) is a formal final warning. It shows you are serious and gives the customer one last chance to pay before you start legal action.
This is not legal advice, but it is a practical template used by trade businesses to recover unpaid invoices.
Before you send an LBA
Make sure you can prove the basics:
- The quote or scope was agreed
- The work was completed
- The invoice was delivered
- The payment terms are clear
If you use Toolfy, export the job timeline, photos, and invoice delivery log so you have evidence ready.
LBA template (copy/paste)
[Your business name]
[Your address]
[Email] | [Phone]
[Date]
[Customer name]
[Customer address]
Re: Letter before action - unpaid invoice [invoice number]
Dear [Customer name],
I am writing to give you formal notice that payment of GBP [amount] for invoice [invoice number] is now overdue. The invoice was issued on [date] for [work description] at [job address] and was due on [due date].
Despite previous reminders on [dates], payment has not been received.
Unless payment in full is received within 14 days of the date of this letter, I will begin legal action to recover the debt without further notice. This may include court fees, interest, and recovery costs where applicable.
Payment can be made by [bank details / payment link]. If you believe there is a genuine dispute, please respond in writing within 7 days with full details.
Yours sincerely,
[Name]
[Role]
[Business name]
When to use statutory interest
- Business-to-business (B2B): You can claim statutory interest under the Late Payment of Commercial Debts Act (8% + Bank of England base rate) plus a fixed fee.
- Consumer customers: Statutory interest does not apply. Use contract terms if you have them.
If you plan to add interest or fees, list them clearly in the letter.
A practical timeline that works
- Day 0: Invoice sent with clear payment terms.
- Day 7: First reminder (friendly).
- Day 14: Second reminder (firm, deadline).
- Day 21: Letter before action.
- Day 35: File small claims if no payment.
Keep it professional
Do not threaten actions you will not take. An LBA works because it is credible and calm. You want the customer to pay, not argue.
Toolfy tip
Attach the LBA to the customer record so your team can see the final deadline. If payment lands, log it and close the loop.
⚠️ Important Disclaimer
This guide is for general informational and educational purposes only. It does not constitute professional advice of any kind (legal, financial, tax, insurance, or otherwise).
Before making business decisions: Consult with qualified professionals (solicitors, accountants, insurance brokers, etc.) who can assess your specific circumstances. Laws, regulations, and industry standards change frequently and vary by location and situation.
Toolfy and the article authors accept no liability for decisions made or actions taken based on information provided in this guide. You are solely responsible for ensuring compliance with all applicable laws and regulations.
Frequently Asked Questions
Is a letter before action required in the UK?
How long should I give them to pay?
Need this workflow in Toolfy?
Spin up the exact checklist, scripts, and automations from this article inside your workspace.
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