Letter Before Action for Unpaid Invoice (UK Template 2026)

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A letter before action is the formal final notice you send a UK customer 14 to 30 days before issuing court proceedings for an unpaid invoice. It must state the amount owed, the invoice reference, the contractual or statutory interest claimed (Late Payment of Commercial Debts Act 1998, currently 11.75% APR plus £40 to £100 fixed compensation), and a clear deadline for payment. UK courts expect this letter under the Pre-Action Conduct Practice Direction, and most B2B unpaid invoice disputes settle at this stage without going to court.

Last updated: 8 May 2026.

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Direct Answer

A letter before action is the formal final notice you send a UK customer 14 to 30 days before issuing court proceedings for an unpaid invoice. It must state the amount owed, the invoice reference, the contractual or statutory interest claimed (Late Payment of Commercial Debts Act 1998, currently 11.

Summary

A letter before action is the formal final notice you send a UK customer 14 to 30 days before issuing court proceedings for an unpaid invoice. It must state the amount owed, the invoice reference, the contractual or statutory interest claimed (Late Payment of Commercial Debts Act 1998, currently 11.75% APR plus £40 to £100 fixed compensation), and a clear deadline for payment. UK courts expect this letter under the Pre-Action Conduct Practice Direction, and most B2B unpaid invoice disputes settle at this stage without going to court.

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letter before action for unpaid invoices in the UK: template, timing, statutory interest claim, and what to do if it's ignored

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What goes in a letter before action UK

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Letter before action template free download

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Pre-Action Conduct Practice Direction explained

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What happens 14 days after the letter before action

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Letter before action vs statutory demand UK

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OM

Oliver Mackman

Director, Market Invoice

Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.

Last reviewed: 8 May 2026

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Letter Before Action UK FAQ

What is a letter before action for an unpaid invoice?

A formal letter giving a UK debtor a final 14 to 30 day deadline to pay before you file court proceedings. Required by the Pre-Action Conduct Practice Direction. Must state the amount owed, invoice reference, statutory or contractual interest claimed, and a clear deadline. Failure to send one before issuing court proceedings can result in cost penalties even if you win.

What should a letter before action include?

Date, your business name and address, the debtor's name and registered address, full amount owed, invoice numbers and dates, statutory late payment interest claimed (11.75% APR), fixed compensation under Late Payment of Commercial Debts Act 1998 (£40, £70 or £100 by debt size), the deadline for payment (14 days standard, 30 days for larger commercial disputes), a clear statement that you will issue court proceedings if no payment is received, and your contact details for settlement.

How long should I give in a letter before action?

Standard B2B commercial: 14 days. Larger or more complex disputes: 30 days. Disputes involving unrepresented individuals: 30 days minimum (Pre-Action Conduct Practice Direction).

Can I send a letter before action by email?

Yes, email is sufficient if you can prove receipt (read receipt, reply, or evidence the email address is monitored). Best practice: send by both email and signed-for post. Keep proof of delivery for any future court bundle.

What if the customer ignores the letter before action?

You have three options: (1) issue a money claim online at moneyclaim.gov.uk for under £100,000 (court fee £35 to £455 depending on debt size); (2) file a statutory demand if the debt is over £750 (£90 fee, can lead to winding-up petition); (3) sell the invoice to a spot factoring provider with debt recovery built in (Hydr, Kriya). Most letter-before-action recipients pay within the deadline once they realise court action is genuinely imminent.

Do I need a solicitor to send a letter before action?

No. You can write and send it yourself. Many businesses do. A solicitor letter on legal headed paper sometimes prompts faster payment but costs £100 to £400. For invoices under £5,000, DIY is usually proportionate. For invoices over £25,000 or complex disputes, instructing a debt recovery solicitor pays for itself in faster recovery and stronger evidence trail.