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)

The hardest part is usually knowing whether your case is strong enough to be worth pursuing. A weak claim can cost you more in court fees and time than the invoice is worth.

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

Organising your evidence properly matters. Courts deal with hundreds of cases — if yours is well-presented, it immediately looks more credible.

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](https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp) (check the current rate — your total rate is that plus 8%)
• 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 a combined rate of 12%: £1,000 × 0.12 × 100 ÷ 365 = £32.88

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.

Many claimants leave money on the table by forgetting to add interest and the fixed late payment fee. On a £3,000 invoice that is 6 months overdue, you could be owed an extra £200+ on top of the original amount.

Knowing what your debtor is likely to argue — and preparing your response in advance — is what separates successful claims from failed ones.

"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