Free Tool

Late Payment
Letter Generator

Fill in your invoice details and get a professional, legally-grounded demand letter — with the statutory interest and fixed recovery cost calculated for you under the Late Payment of Commercial Debts Act 1998.

Your overdue invoice details

[Your Business Name]
[Your Address]
11 Nov 2026

Dear [Client Name],

RE: Overdue Invoice [Invoice Ref] — Formal Notice

I am writing to notify you that invoice [Invoice Ref] for the sum of [£Amount] is now overdue. Payment was due on [Due Date].

Under the Late Payment of Commercial Debts (Interest) Act 1998, I am legally entitled to charge statutory interest at 11.75% per annum (8% above the Bank of England base rate) on the outstanding amount, accruing daily from the day after the due date, plus a fixed sum for debt recovery costs.

Fixed debt recovery cost: £40 (invoices up to £999.99) / £70 (£1,000–£9,999.99) / £100 (£10,000+)
Interest rate: 11.75% p.a. — accruing daily

I would be grateful if you could arrange payment of the full amount of [£Total Including Interest] within 7 days of the date of this letter. Payment should be made to:

Account Name: [Your Account Name]
Sort Code: [XX-XX-XX]
Account Number: [XXXXXXXX]
Reference: [Invoice Ref]

If payment is not received within this period, I reserve the right to pursue this debt through formal channels, which may include referral to a debt recovery agency or County Court proceedings. Such proceedings may adversely affect your credit rating.

I trust this matter can be resolved promptly. If you have already made payment, please disregard this notice and accept my thanks.

Yours faithfully,

[Your Name]
[Your Business Name]

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Plus tips on enforcing late payment under UK law. No spam, ever.

Related reading
Letter Before Action — how and when to send one
The formal pre-court step, what it must contain, and why it's usually the letter that gets you paid.
The Late Payment Act 1998 — explained
Who it covers, what you're entitled to, common myths, and how to actually use it.
How to chase late invoices — playbook
Day-by-day timeline. When to send what; when to escalate.
Late payment interest calculator
Work out exactly what you're owed in statutory interest plus fixed sum.

Why write late payment letters when Hielda does it for you?

Hielda sends escalating chase emails automatically — eight in the first 30 days, then monthly formal reminders — calculates statutory interest daily, and checks in with you before every step. You never have to write another letter.

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