How do I use Money Claim Online (MCOL) to recover an unpaid invoice?

Money Claim Online (MCOL) is the UK government's online portal for making County Court claims for debts up to £100,000. You register at moneyclaims.service.gov.uk, fill in details of the debt, pay a court fee (starting from £35 for claims up to £300), and submit. The defendant has 14 days to respond. If they don't, you can request a County Court Judgment (CCJ) by default.

What happens if a client ignores a County Court Judgment (CCJ)?

If a client ignores a CCJ, you can apply for enforcement. Options include a warrant of control (bailiffs seize assets), an attachment of earnings order, a third-party debt order (freezing their bank account), or a charging order against their property. A CCJ also appears on the client's credit file for six years, which can seriously affect their ability to get business credit.

UK Legal Guide · February 2026

Client Won't Pay Your Invoice? A UK Freelancer's Step-by-Step Guide

Q: How long should I wait before taking legal action on an unpaid invoice UK?

There's no fixed rule, but best practice is to follow a structured escalation: informal reminders in the first 1–14 days, a formal demand at 14–21 days, a Letter Before Action at 30 days giving 14 days' notice, and then court action via MCOL if there's still no response. Most debts are resolved before reaching court.

Q: What is the Small Claims Court limit in the UK?

In England and Wales, claims up to £10,000 are allocated to the Small Claims Track. This is designed to be straightforward enough that you don't need a solicitor. Court fees are lower, hearings are informal, and even if you lose, the other side generally can't recover their legal costs from you.

You've done the work. You've sent the invoice. You've sent the follow-up. And still — nothing. If you're a freelancer in the UK wondering what to do when a client won't pay, this guide walks you through every step: from polite chasing to legal enforcement, with template letters you can use today.

Let's get something out of the way first: you are not being unreasonable. Expecting to be paid for completed work is not pushy, aggressive, or "difficult." It's the bare minimum of a professional arrangement.

Yet here you are, Googling "client not paying invoice what to do UK" at half past midnight, feeling a knot in your stomach. I know — because I've been there. Most UK freelancers have. According to research by IPSE (the Association of Independent Professionals and the Self-Employed), the average freelancer in the UK is owed over £5,000 in late payments at any given time.

The good news? UK law is firmly on your side. The Late Payment of Commercial Debts (Interest) Act 1998 gives you powerful tools — including the right to charge interest and claim compensation — and the court process for recovering smaller debts is genuinely designed to be used without a solicitor.

Here's your roadmap, step by step.

Your Legal Rights Under UK Law

Before you send a single email, it's worth knowing what the law already entitles you to. You might be surprised — most freelancers are.

The Late Payment of Commercial Debts (Interest) Act 1998

This is the big one. If you supply goods or services to another business (B2B), and they don't pay on time, you're automatically entitled to (use our late payment interest calculator to see the exact figures):

Statutory interest at 8% per annum above the Bank of England base rate. As of early 2026, with the base rate at 4.5%, that's a total of 12.5% annual interest on the overdue amount. It accrues daily from the day after the payment was due.
Fixed compensation for the cost of recovering the debt — on top of the interest.

The fixed compensation amounts are set by statute:

Debt Amount	Fixed Compensation
Up to £999.99	£40
£1,000 – £9,999.99	£70
£10,000 or more	£100

You don't need to have included these terms in your contract. They apply automatically to all B2B transactions in England, Wales, and Scotland. Your contract can specify different payment terms (e.g. NET 30), but it cannot remove your right to statutory interest — any clause attempting to do so is void.

💡 Key point: You don't need to threaten interest from day one. But knowing you're entitled to it gives you confidence — and mentioning it in a Letter Before Action makes your position much stronger.

Default Payment Terms

If your contract doesn't specify payment terms, the law sets a default: 30 days from delivery of the invoice or the goods/services (whichever is later). After that, you can start claiming interest. For public-sector contracts, the limit is also 30 days. And under the Act, any contractual term exceeding 60 days can potentially be challenged as unfair.

The Informal Chase (1–14 Days Overdue)

Most unpaid invoices are down to disorganisation, not malice. Your client's accounts person is on holiday. The email went to spam. They're waiting on sign-off from someone above them. A friendly nudge resolves the majority of late payments before they become a problem.

Here's what to do in the first two weeks:

Day 1–3: Send a brief, warm email. Re-attach the invoice. Assume it's been missed.
Day 7: Follow up again if no response. Ask for a specific payment date.
Day 10–14: Try a different channel — phone call, LinkedIn message, or text. Sometimes email just isn't cutting through.

Keep your tone collaborative. You're on the same side — you're just trying to get an admin task ticked off.

Template — Informal Follow-Up Email

Subject: Quick follow-up — Invoice #[NUMBER]

Hi [NAME],

Hope you're well. Just a quick one — I wanted to check that invoice #[NUMBER] for £[AMOUNT] came through OK. It was due on [DATE] and I haven't seen payment come in yet, so thought I'd flag it in case it's slipped through the cracks.

I've re-attached it here for ease. Could you let me know when I might expect payment, or if there's someone in accounts I should contact directly?

No drama at all — just want to make sure it's on the radar.

Cheers,
[YOUR NAME]

If you've already sent a few polite payment reminder emails and had nothing back, it's time to shift gear. The friendly approach has had its fair go.

The Formal Demand (14–30 Days Overdue)

Two weeks with no response is a red flag. Not necessarily that the client is acting in bad faith — but enough that you need to treat this as a serious issue, not an admin oversight.

At this stage, your email should:

Reference the specific invoice number, amount, and due date
State that the payment is now formally overdue
Mention your entitlement to statutory interest under the Late Payment of Commercial Debts Act 1998 (you don't need to calculate the exact figure yet — just flag it)
Request payment within a specific timeframe (7 days is standard)
Note that you'll take further action if the matter isn't resolved

Template — Formal Demand Email

Subject: Formal payment request — Invoice #[NUMBER] (overdue)

Dear [NAME],

I am writing regarding invoice #[NUMBER] for the sum of £[AMOUNT], issued on [INVOICE DATE] with a due date of [DUE DATE]. Despite previous reminders, payment has not been received and the invoice is now [X] days overdue.

I wish to resolve this matter amicably. However, I must advise you that under the Late Payment of Commercial Debts (Interest) Act 1998, I am entitled to claim statutory interest at 8% above the Bank of England base rate, plus fixed compensation of £[40/70/100] for the cost of debt recovery.

I am requesting that full payment of £[AMOUNT] is made within 7 days of this email — by [DEADLINE DATE].

If there is a genuine dispute regarding the invoice or the work delivered, please let me know in writing and I will be happy to discuss it. If I do not receive payment or a substantive response by [DEADLINE DATE], I will have no choice but to begin formal debt recovery proceedings.

I trust we can resolve this without further escalation.

Yours sincerely,
[YOUR NAME]
[YOUR BUSINESS NAME / TRADING NAME]
[YOUR ADDRESS]

💡 Pro tip: Send this via email and post (regular first-class mail). Having a paper trail strengthens your position if the matter reaches court. Keep a copy of everything.

For a full escalating sequence of emails you can deploy automatically, see our freelancer late payment email sequence guide.

Letter Before Action (30+ Days Overdue)

This is where things get properly formal. A Letter Before Action (sometimes called a "Letter of Claim" or "LBA") is the final step before court proceedings. It's not legally required, but courts in England and Wales expect you to have sent one — and failing to do so can count against you.

Under the Pre-Action Protocol for Debt Claims, your Letter Before Action should:

Clearly state the total amount owed (including any statutory interest and compensation you're claiming)
Explain how the debt arose (the work you completed, when, and the agreed payment terms)
Give the debtor at least 14 days to respond (courts may frown on shorter deadlines unless circumstances justify it)
State that you will issue court proceedings if payment or a satisfactory response is not received
Mention their right to seek debt advice (for compliance with the Protocol — a standard line will do)

Template — Letter Before Action

[YOUR NAME / BUSINESS NAME]
[YOUR ADDRESS]
[YOUR EMAIL]
[DATE]

LETTER BEFORE ACTION

Dear [CLIENT NAME / COMPANY NAME],

I am writing in connection with the unpaid invoice detailed below:

Invoice number: [NUMBER]
Invoice date: [DATE]
Services provided: [BRIEF DESCRIPTION]
Original amount due: £[AMOUNT]
Payment due date: [DATE]
Days overdue: [NUMBER]

Despite multiple attempts to resolve this matter informally, the above invoice remains unpaid.

In accordance with the Late Payment of Commercial Debts (Interest) Act 1998, I am also entitled to claim:

• Statutory interest: £[CALCULATED AMOUNT] (8% + Bank of England base rate of [X]%, accrued from [DAY AFTER DUE DATE] to today)
• Fixed compensation: £[40/70/100]

Total now owed: £[TOTAL INCLUDING INTEREST AND COMPENSATION]

I am giving you 14 days from the date of this letter (until [DEADLINE DATE]) to either:

1. Pay the total amount of £[TOTAL] in full, or
2. Contact me with a written proposal for resolving this dispute.

If I do not receive satisfactory payment or a response within this timeframe, I intend to issue a claim through the County Court without further notice. This may result in a County Court Judgment (CCJ) being entered against you, additional court fees and costs being added to the debt, and the judgment appearing on your credit record for six years.

If you are experiencing financial difficulty, you may wish to seek free debt advice from organisations such as Citizens Advice (citizensadvice.org.uk) or StepChange (stepchange.org).

I sincerely hope we can resolve this matter without court proceedings.

Yours faithfully,
[YOUR NAME]

Send the Letter Before Action by recorded delivery (Royal Mail Signed For) so you have proof of delivery. Send a copy via email as well. Mark the date you sent it — you'll need to wait the full 14 days before proceeding to the next step.

⚡ Real talk: In my experience, the Letter Before Action is where most non-paying clients suddenly find the money. The moment "County Court" and "CCJ" appear in a letter, the situation feels real. Roughly 70% of disputes are resolved at this stage — before you ever need to file a claim.

Money Claim Online & Small Claims Court

Still nothing? Time to issue a claim. It sounds daunting, but the process is genuinely designed for individuals and small businesses to use without a solicitor.

Money Claim Online (MCOL)

Money Claim Online is the UK government's digital portal for issuing County Court claims. You can use it for debts up to £100,000 against no more than two defendants, as long as they have an address in England or Wales.

Here's how it works:

Create an account at moneyclaims.service.gov.uk
Fill in the claim details: your information, the defendant's name and address, the amount owed, and a brief description of why the money is owed
Pay the court fee (see below)
The court sends the claim to the defendant, who has 14 days to respond

Court fees for MCOL are based on the claim amount:

Claim Amount	Court Fee
Up to £300	£35
£300.01 – £500	£50
£500.01 – £1,000	£70
£1,000.01 – £1,500	£80
£1,500.01 – £3,000	£115
£3,000.01 – £5,000	£205
£5,000.01 – £10,000	£455

These fees are added to the debt — the defendant pays them if you win (which, with a clear paper trail, you almost certainly will).

What Happens After You File

The defendant has three options once they receive the claim:

Pay the full amount — great, you're done.
Admit the debt and propose a payment plan — the court may ask you to accept reasonable instalment offers.
Dispute the claim (file a defence) — the case is then allocated to a court track.
Do nothing — you apply for a default judgment, and the court enters a CCJ in your favour automatically.

The Small Claims Track

For claims up to £10,000, the case is allocated to the Small Claims Track. This is the most freelancer-friendly part of the system:

Hearings are informal — often held in a private room, not a courtroom
You don't need a solicitor (and even if the other side brings one, you won't be ordered to pay their legal costs if you lose)
The judge actively helps both parties navigate the process
Many cases are decided on paper alone, without an in-person hearing

In practice, the vast majority of MCOL claims for unpaid invoices never reach a hearing. The defendant either pays up or doesn't respond (giving you a default CCJ).

Enforcement — When You Have a CCJ

A CCJ (County Court Judgment) is a court order stating that the defendant owes you money. If they still won't pay after a CCJ is entered, you have several enforcement options:

Warrant of Control: County Court bailiffs attend the debtor's premises and seize goods to the value of the debt. Fee: £77 for debts up to £5,000.
Attachment of Earnings Order: If the debtor is employed, the court orders their employer to deduct payments directly from their wages.
Third-Party Debt Order: Freezes money in the debtor's bank account and pays it to you.
Charging Order: Secures the debt against the debtor's property. They can't sell it without paying you first.

Beyond the immediate enforcement, a CCJ sits on the debtor's credit record for six years. For a business, this can make it extremely difficult to get loans, credit accounts, or even commercial premises. That threat alone is often enough to prompt payment.

💡 Important: If the debtor pays the full amount within one month of the CCJ being entered, they can apply to have it removed from their credit record. After that, it stays for six years even if they pay. This is useful leverage — mention it.

How to Prevent Non-Payment in the First Place

The best debt recovery process is one you never have to use. Here's how to stack the odds in your favour from the start:

Always use a written contract. It doesn't need to be 40 pages of legalese — a clear scope of work, deliverables, payment amount, payment terms, and late payment clause is enough. Without a contract, you can still claim (especially with emails confirming the arrangement), but it's harder.
Take deposits. 25–50% upfront is standard for freelance work. It demonstrates client commitment and reduces your exposure. For larger projects, use milestone payments so you're never too far ahead on delivered work.
Invoice immediately. The day you deliver the work or hit a milestone, send the invoice. Delays on your side create delays on theirs.
Set sensible payment terms. NET 14 is reasonable for freelancers. NET 30 is generous. Anything beyond NET 30 should be challenged.
Chase early and consistently. A reminder on day 1 after the due date is not rude — it's professional. Having a structured system for chasing unpaid invoices makes all the difference.
Vet new clients. Check Companies House for red flags. Google them. Ask for references. Trust your gut if something feels off — learn the warning signs a client won't pay.
Automate your follow-ups. You shouldn't have to remember to chase — your tools should do it for you.

Frequently Asked Questions

Can I charge interest on a late invoice in the UK?

Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge statutory interest of 8% above the Bank of England base rate on overdue B2B invoices. You can also claim fixed compensation: £40 for debts up to £999.99, £70 for debts of £1,000–£9,999.99, and £100 for debts of £10,000 or more. You don't need to have stated this in your contract — it's a statutory right.

How do I use Money Claim Online (MCOL)?

MCOL is the UK government's portal for County Court debt claims up to £100,000. Register at moneyclaims.service.gov.uk, enter the details, pay the court fee (from £35), and submit. The defendant gets 14 days to respond. If they don't, you can request a default CCJ — a court order confirming they owe you the money.

How long should I wait before taking legal action?

Best practice is a structured escalation: informal reminders for 1–14 days, a formal demand at 14–21 days, a Letter Before Action at 30 days (giving 14 days to respond), and then MCOL if there's still no payment. Most debts resolve before reaching court — the Letter Before Action alone settles the majority of cases.

What is the Small Claims Court limit in the UK?

In England and Wales, the Small Claims Track covers claims up to £10,000. It's designed for individuals and small businesses — you don't need a solicitor, hearings are informal, and the loser typically isn't ordered to pay the winner's legal costs. It's the most accessible route for freelancers recovering unpaid invoices.

What if the client ignores a County Court Judgment?

If a client ignores a CCJ, you can apply for enforcement: a warrant of control (bailiffs), attachment of earnings, a third-party debt order (bank account freeze), or a charging order against their property. The CCJ also sits on their credit file for six years — which can be devastating for a business.

Do I need a solicitor to recover an unpaid invoice?

For most freelance debts (especially under £10,000), no. The entire process — from Letter Before Action to MCOL to Small Claims Court — is designed to be navigated without legal representation. If the debt is large or the dispute is complex, a solicitor can help, but for a straightforward "they owe me money and won't pay," you can absolutely handle it yourself.

Stop Chasing — Start Automating

If you've read this far, you're already ahead of most freelancers. You know your rights. You have the templates. You know the process.

But here's the uncomfortable truth: the best time to start chasing is day one. Every day you delay makes it harder to recover the money. And the reason most freelancers delay isn't that they don't know what to do — it's that they don't have a system that does it for them.

That's exactly what Landolio builds.

🛡️ Never Chase an Invoice Manually Again

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The Swipe File includes every email template in this guide — plus formal demand letters, Letter Before Action templates, and a complete 60-day escalation sequence. All written in UK English, referencing UK law, ready to customise and send. For the price of a fancy coffee.

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Written by the team at Landolio — tools and templates for UK freelancers who'd rather do great work than chase payments.

Disclaimer: This guide provides general information about UK debt recovery processes and is not legal advice. For complex situations, consider consulting a solicitor.