Unpaid invoice letter template
Most templates leave you a square bracket where the interest should go. That is the hard part, so this one fills it in.
Your real figures
Interest worked out at the reference rate for the period your debt fell overdue, not at today's base rate.
The right citations
Sections 1 and 6 for the interest, section 5A for the fixed sum. Named, not paraphrased.
A checkable total
Set out line by line, so their accounts team verifies it instead of arguing with it.
What goes in the letter
- The invoice: number, amount, issue date, due date
- How many days overdue it is
- The interest, the rate, and where the rate comes from
- The fixed sum under section 5A
- A total, set out line by line
- A payment deadline, 14 days out
- An invitation to raise a genuine dispute in writing
Common questions
What should an unpaid invoice letter say?
The invoice number, amount, issue date and due date; how many days overdue it is; the statutory interest and fixed sum you are claiming and the sections of the Act they come from; a total; and a date by which you want payment. Keep it short and factual, and give them somewhere to raise a genuine dispute.
How long should I give them to pay?
14 days is the usual window on a first written request, and it is what this template sets. It is long enough to be reasonable if you later have to show a court you tried to settle, and short enough to be a deadline.
Should I add interest to the letter or send a separate invoice?
State it in the letter so they can see the total, and send a separate invoice for the interest and the fixed sum if you want it in their accounting system. GOV.UK suggests issuing a new invoice if you decide to add interest.
One letter rarely does it
NoReply keeps the interest up to date, tells you when it is worth chasing, and writes the second letter and the letter before action. First invoice free.
Related
Other places this tool comes in handy - plus the companies most likely to be on the receiving end.