Claiming for Unpaid Invoices

Unpaid invoices are one of the most common reasons for small claims court cases. Whether you are a freelancer, contractor, or small business, the process is the same:

Your legal position: - If you provided goods or services as agreed, and the invoice is due, you have a right to be paid - You do not need a written contract (though it helps) - You can claim statutory interest on late commercial payments

Common scenarios: - Client received work but has not paid - Partial payment received, balance outstanding - Customer disputes the invoice amount - Business has ceased trading but directors remain liable (sometimes)

Essential evidence: - The unpaid invoice(s) - Proof the goods/services were delivered - Any contract or agreement (written or email) - Correspondence about the debt - Your letter before claim and proof of sending

Helpful evidence: - Purchase orders or quotes they approved - Sign-off or acceptance of work - Records of previous payments (shows the relationship) - Attempts to resolve the dispute

Tips: - Screenshots of messages are valid evidence - Bank statements showing previous payments - Delivery notes or receipts - Email chains approving the work

Statutory interest (commercial debts): Under the Late Payment of Commercial Debts (Interest) Act 1998, you can claim:

• Interest at 8% above the Bank of England base rate (currently around 13%)
• A fixed late payment fee:
• - Up to £999.99: £40
• - £1,000 to £9,999.99: £70
• - £10,000+: £100

Calculating interest: Interest = (Amount owed × Interest rate × Days late) ÷ 365

Example: £1,000 owed for 100 days at 13%: £1,000 × 0.13 × 100 ÷ 365 = £35.62

Note: You can only claim statutory interest on business-to-business transactions. For consumer debts, you can claim court interest (8%) from the date you file your claim.

"The work was not done properly" - You need evidence of satisfactory completion - Sign-off emails or messages are helpful - Consider if there is any truth to their claim

"We never agreed to that price" - Show the quote or agreement they approved - Evidence of previous similar transactions - Industry standard rates can help

"The invoice was never received" - Show proof of sending (email delivery, recorded post) - Your letter before claim serves as additional notice

"We are disputing the invoice" - Ask them to specify their dispute in writing - Courts look unfavourably on vague disputes raised late

"The company has no money" - Check Companies House for active status - Consider personal guarantees if they exist - Directors may be liable in some circumstances