Can I charge interest on a late invoice?

For business-to-business debts you can claim statutory interest at 8% above the Bank of England base rate plus a fixed compensation sum. For consumer work you can only charge interest if your contract terms say so and the term is fair.

What deposit is reasonable?

Enough to cover materials plus a day of labour on most domestic work. For long lead-time items, invoice the item cost separately with the order. Very large upfront percentages make customers nervous and are hard to defend.

What do I do when a customer simply will not pay?

Stop work, put everything in writing, send a letter before action with a deadline, then use the money claim service for undisputed amounts. Keep the quote, variations, photographs and messages — that evidence decides it.

Getting Paid for UK Tradespeople | The Trades Business Builder

Getting paid is a system, not a personality trait. Businesses that get paid quickly usually agreed terms in writing before starting, invoiced the same day, and had a written chase sequence that ran whether or not the owner felt like ringing.

This hub covers deposits, stage payments, payment on completion, terms, reminders, overdue invoices, when stopping work is appropriate, payment links and cards, retention on commercial work, disputes and basic credit control.

Start with the numbers

What this hub covers

Topic clusters

Written in the order the decisions actually arrive.

Agree money before tools
Deposits and stage payments set at quote stage.
Invoice properly
Fewer questions means faster money.
Chasing and escalation
A sequence, not a mood.

Marcus on this hub

What matters most here

The three things that change the numbers fastest in this part of the business.

Terms only work if they are in the quote

Payment terms agreed at the invoice stage are a request. Payment terms written into the accepted quote are part of the contract: deposit, stage payments, days to pay, and what happens if payment is late.

Seven or fourteen days is standard for domestic work. Thirty days is a commercial convention, not an obligation you have to accept.

Make paying you the easiest thing on the customer's list

Invoice on the day you finish, from your phone if necessary. Include a payment link or clear bank details, the job address, and a one-line description that matches what they agreed to.

Most late payment in domestic trade work is not refusal — it is drift. Same-day invoicing and a polite reminder on day eight collect more money than any threat of interest.

Escalate on a schedule, not on how annoyed you feel

Day 8 a friendly reminder, day 15 a firm one restating the terms, day 22 a formal notice adding statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998 for business customers, day 30 a letter before action.

Because it is a schedule, it happens whether or not you have the energy for a confrontation — and the paper trail is exactly what a small claim needs later.

Tools

Calculators for this area

Templates

Paperwork for this area

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Straight answers

Common questions

Can I charge interest on a late invoice?: For business-to-business debts you can claim statutory interest at 8% above the Bank of England base rate plus a fixed compensation sum. For consumer work you can only charge interest if your contract terms say so and the term is fair.
What deposit is reasonable?: Enough to cover materials plus a day of labour on most domestic work. For long lead-time items, invoice the item cost separately with the order. Very large upfront percentages make customers nervous and are hard to defend.
What do I do when a customer simply will not pay?: Stop work, put everything in writing, send a letter before action with a deadline, then use the money claim service for undisputed amounts. Keep the quote, variations, photographs and messages — that evidence decides it.

Getting Paid

Start with the numbers

Agree money before tools

Invoice properly

Chasing and escalation

Terms only work if they are in the quote

Make paying you the easiest thing on the customer's list

Escalate on a schedule, not on how annoyed you feel