How to Chase Late Invoices in the UK

Your legal rights under the Late Payment of Commercial Debts Act 1998 — and how Hielda enforces them for you.

Your Legal Rights

If a company doesn't pay you on time, you have the right to charge interest and additional fines under the Late Payment of Commercial Debts (Interest) Act 1998.

Fixed debt recovery cost: £40 / £70 / £100
Interest: 8% + BoE (3.75%) = 11.75% p.a.
Daily from the day after due

Most freelancers don't enforce this because they worry companies will hold it against them. But if a client withholds your pay, for their benefit, we think it's only fair that you are compensated for the inconvenience.

Hielda chases on your behalf to ensure you're paid the maximum you're fairly and legally entitled to.

Why It Works

Companies pay late because there are no consequences.

A third-party notice citing legislation changes everything:

✓ Client knows you're serious
✓ You're not the bad guy — we are
✓ Real financial penalties
✓ CCJ threat hits credit rating
✓ Completely legal

Chase Timeline

Every step is preceded by a check-in with you. We always ask "have you been paid?" before sending anything to your client.

Day -5
Friendly Reminder
We check in with you first. If unpaid, we send a polite heads-up to your client.
Day -1
Second Reminder
Another check-in with you. If still unpaid, a firmer reminder goes out.
Day 0
Final Warning
Due date. Last chance to settle at the original amount — warns that fines and interest start tomorrow.
Day +1
First Chase
Fines and interest now applied. Formal notice citing the Act with the new total owed.
Day +7, +14, +21
Escalating Chases
Three further chases, each firmer than the last and each with the updated total. Weight, not frequency — nobody is spammed, and the amount grows daily.
Day +30
Final Notice + Letter Before Action
Last formal demand. Hielda also drafts a Letter Before Action from the invoice — the step the court expects before a claim — with a 14-day deadline (30 for sole traders). Sending it commits you to nothing.
Monthly
Formal Reminders Until Paid
It never goes quiet: a formal reminder goes out every month with the growing total. If the letter's deadline passes, Hielda sets out your options — court claim, recovery agent, or park it with interest still running.

Frequently Asked

Will this damage my client relationships?
Most late-paying clients expect to be chased. The early reminders are polite and professional — it's only unpaid invoices that escalate. You can also disable fines for specific invoices if you prefer a softer approach.
Does this apply to all businesses?
The Act applies to business-to-business transactions in England, Wales and Scotland. It doesn't cover consumer debts or contracts with public authorities (which have separate rules).
What if my client disputes the invoice?
You can mark any invoice as disputed directly from your dashboard. Hielda will immediately pause all automated chasing and send a professional acknowledgement email to your client confirming the pause. Once the dispute is resolved, you choose the outcome — paid, adjusted, or written off — and Hielda notifies your client and resumes chasing if needed.
Do I have to charge interest?
No — it's your right, not an obligation. When creating an invoice, tick 'Chase without fines' to send reminders without adding penalties. You can always change this later.

Fixed debt recovery cost

The fixed debt recovery cost depends on the invoice value:

Up to £999.99£40
£1,000 – £9,999.99£70
£10,000+£100

Interest accrues daily at 11.75% per annum from the day after the due date. For a £5,000 invoice, that's roughly £1.61 per day.

Example

Invoice£3,000.00
30 days late — penalty+ £40.00
30 days interest (11.75% p.a.)+ £28.97
Total owed£3,068.97