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Free UK Letter Before Action template
For self-employed UK tradespeople chasing unpaid invoices. Cites the Late Payment of Commercial Debts (Interest) Act 1998, sets a 14-day deadline, and warns of next steps. The standard template courts expect to see before a small-claims filing.
The template (copy and adapt)
Replace the bracketed placeholders with your specific details. Send via recorded post AND email — keep proof of both deliveries.
[Your full business name]
[Your business address]
[Date]
[Customer name / Company name]
[Customer address]
LETTER BEFORE ACTION — UNPAID INVOICE [INVOICE NUMBER]
Dear [Customer name],
I write further to invoice [INVOICE NUMBER] dated [INVOICE DATE] for the sum of £[AMOUNT] in respect of [BRIEF DESCRIPTION OF WORK — e.g. "boiler installation and commissioning at 14 Acacia Avenue"]. Payment was due on [DUE DATE] and remains outstanding [N] days later.
Despite my previous reminders dated [DATE OF REMINDER 1] and [DATE OF REMINDER 2], I have received no payment and no substantive response.
I am therefore entitled, under the Late Payment of Commercial Debts (Interest) Act 1998, to claim:
- The outstanding principal of £[AMOUNT]
- Statutory interest at 8% above the Bank of England base rate, accruing from [DUE DATE] until payment is received in full
- Statutory compensation of £[40 / 70 / 100 — based on invoice size band]
- Reasonable debt-recovery costs
I require payment in full of £[TOTAL INCLUDING INTEREST AND COMPENSATION TO DATE] to be received in cleared funds by [DATE 14 DAYS FROM TODAY].
Payment can be made to: [SORT CODE] [ACCOUNT NUMBER], reference [INVOICE NUMBER]. If you dispute any part of the sum claimed, please respond in writing within 14 days setting out the basis of your dispute.
If full payment is not received, or a substantive response is not provided, by [DATE 14 DAYS FROM TODAY], I will issue a claim through Money Claim Online without further notice. Court fees and any reasonable solicitor's costs will be added to the claim. A County Court Judgment (CCJ) issued against you will appear on your credit record for six years and may affect your ability to obtain credit or trade with other suppliers.
I would prefer to resolve this matter without court proceedings. Please confirm payment or respond with any dispute within 14 days.
Yours faithfully,
[Your name]
[Your business name]
Before sending — quick checklist
- Confirm the invoice was correctly addressed and delivered. If they claim they never received it, the LBA is the wrong first step — resend the invoice and start the escalation from there.
- Send at least two informal reminders before the LBA — courts dislike claimants who jump straight to formal action.
- Triple-check the maths: principal, statutory interest calculation, statutory compensation band, total. Errors look unprofessional and weaken your case.
- Send via recorded delivery AND email AND your usual messaging channel. Keep proof of delivery for all three.
- Diary the 14-day deadline. If unpaid on day 15, file via Money Claim Online the same day — delay weakens your case.
Frequently asked
- What is a Letter Before Action in UK debt recovery?
- A Letter Before Action (LBA), also called a Letter Before Claim, is a formal written notice sent to a debtor before issuing court proceedings. Under the UK Practice Direction on Pre-Action Conduct and Protocols, claimants are expected to exchange information and try to settle before going to court. An LBA gives the debtor a clear final opportunity to pay — typically 14 days — and warns of the next step (small claims court, statutory interest, costs). It's not legally required for every claim but it's strongly expected by the courts; failing to send one can affect costs awarded if you win.
- When should I send a Letter Before Action for an unpaid invoice?
- After two friendly chasers have failed. The typical escalation is: friendly reminder on day 31 (one day after the invoice was due), firmer reminder on day 45, and the Letter Before Action between day 60 and day 75. Sending an LBA before two informal reminders looks aggressive; sending one after 90+ days of silence loses some leverage. Send via post (recorded delivery) AND email AND your usual channel (WhatsApp / SMS) so the debtor can't claim they didn't receive it.
- What statutory interest can I charge as a UK tradesperson?
- Under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses can claim statutory interest of 8% + Bank of England base rate on overdue commercial invoices, plus statutory compensation of £40 (debts under £1,000), £70 (£1,000–£9,999), or £100 (£10,000+). Reasonable debt recovery costs can also be claimed on top. The Act only applies to B2B invoices — not consumer invoices. The interest accrues from the day after payment was due. Cite the Act in your Letter Before Action even if you don't intend to claim the full interest in court; the citation alone often shifts payment behaviour.
- What happens if the Letter Before Action is ignored?
- If the debtor doesn't pay or respond within 14 days, the next step is filing a small claims claim through Money Claim Online (gov.uk/make-court-claim-for-money). Court fees range from £35 (claims up to £300) to £455 (claims £5,000–£10,000). If you win and the debtor still doesn't pay, you can apply for enforcement via High Court enforcement officers, attachment of earnings, or third-party debt orders. Most debtors pay before it reaches enforcement; the threat of a CCJ on their credit record is usually enough.
- Should I use a solicitor to draft my Letter Before Action?
- For invoices under £5,000, no. The template below covers the standard requirements (clear identification of the debt, statutory interest calculation, 14-day deadline, escalation warning) and is what most small-claims judges expect to see. For invoices over £10,000 or where the contract is disputed, a solicitor's letter (typically £150–£400) carries more weight and lets you claim back the legal cost as recoverable expense if you win. For straightforward unpaid trade invoices, a well-drafted self-sent LBA works fine.
Stop reaching the Letter Before Action stage
The best way to avoid sending Letters Before Action is to invoice the same day work is completed and to chase automatically on day 3, day 7, and day 14 overdue. Wedge does both by default — invoice from WhatsApp in 60 seconds, automatic friendly reminders on the cadence that maximises payment without burning the relationship.
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