How to Write a Letter Before Action for Unpaid Invoices (Free Template)

You've done the work. You've sent the invoice. You've chased politely—once, twice, maybe three times. And still nothing. Radio silence, vague promises, or the classic "it's with accounts." At some point, politeness stops working and you need something with actual teeth.

That something is a Letter Before Action (LBA). It's the formal, legal step that tells your client: pay what you owe, or I'm taking you to court. And in the UK, it's not just a good idea—it's a legal requirement before you can issue court proceedings.

This guide walks you through exactly what an LBA is, why you need one, what the law requires you to include, and gives you a free, copy-paste-ready template you can customise and send today. No solicitor needed.

What Is a Letter Before Action?

A Letter Before Action—sometimes called a pre-action letter, letter of claim, or LBA—is a formal written notice demanding payment of a debt before legal proceedings are issued. Think of it as the final warning shot.

It serves three purposes:

• Legal compliance: UK courts require you to follow the Pre-Action Protocol before filing a claim. An LBA is the centrepiece of that protocol.
• Psychological pressure: The words "court proceedings" in a formal letter concentrate the mind wonderfully. Most debtors pay at this stage because they realise you're serious.
• Evidence: If the case does go to court, your LBA proves you gave the debtor a fair opportunity to pay or dispute the debt.

For freelancers chasing unpaid invoices in the UK, the LBA is often the turning point. Studies suggest that around 70–80% of debts are settled after a properly drafted LBA is sent. Most clients aren't malicious—they're disorganised, cash-strapped, or hoping you'll give up. An LBA tells them you won't.

Why You MUST Send One Before Going to Court

This isn't optional. Under the Practice Direction on Pre-Action Conduct and Protocols and the Pre-Action Protocol for Debt Claims, you are required to send a Letter Before Action and wait for a response before issuing court proceedings in England and Wales.

If you skip the LBA and go straight to court, several bad things can happen:

• The court may stay (pause) your claim and order you to comply with the protocol first.
• You could be penalised on costs—meaning even if you win, you won't recover your court fees.
• The judge may view your claim less favourably, seeing you as unreasonable.

In practice, this means sending the LBA adds a few weeks to the process. But it's a few weeks that could save you the claim entirely, since most debtors pay up once they see you're serious. And if they don't, you'll have a much stronger position in court.

Pre-Action Protocol Requirements (UK Law)

The Pre-Action Protocol for Debt Claims (which applies to most business-to-business invoice disputes) requires your Letter Before Action to include specific information. Here's what the protocol says you must provide:

1. The amount owed — the original invoice total, clearly stated.
2. How the amount is calculated — if you're adding interest or compensation, show the workings.
3. Whether interest is being claimed — under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge 8% above the Bank of England base rate, plus fixed compensation (£40–£100 depending on the debt size).
4. The details of the original agreement — what the work was, when it was done, the agreed terms.
5. A deadline to respond — the protocol requires at least 30 days from receipt of the letter.
6. Details of how to pay — bank details or payment method.
7. Information about alternative dispute resolution (ADR) — you should mention that mediation or negotiation is available as an alternative to court.
8. A statement that court proceedings will follow if the debt isn't paid or disputed.

You also need to include an information sheet and reply form for individual debtors (not companies). For business-to-business disputes between freelancers and companies, this is typically not required—but including clear response instructions is still good practice.

Step-by-Step: Writing Your Letter Before Action

Let's break down each section of the letter. You don't need legal jargon or fancy language. You need clarity, firmness, and the right information.

1. Your details and the date

Start with your full name (or business name), address, email, and phone number. Date the letter clearly. If you're sending by post, use the date you post it.

2. The debtor's details

Full legal name of the company or individual, their registered address (for companies, use the address on Companies House), and any reference numbers.

3. The subject line

Make it unmistakable: "Letter Before Action — Unpaid Invoice [NUMBER]". This isn't a friendly reminder. The subject line should signal that immediately.

4. Opening paragraph

State that this is a formal Letter Before Action in accordance with the Pre-Action Protocol for Debt Claims. Reference the invoice number, the amount, and the original due date.

5. Background

Briefly describe the work you did, the agreed terms, and when the invoice was issued. Keep it factual. This isn't the place for emotions or complaints about how they've treated you.

6. The demand

State the total amount owed, including any late payment interest and statutory compensation. Show the calculation clearly. Give a deadline—14 days is standard for payment, though the protocol allows 30 days for a response.

7. Interest calculation

Under the Late Payment of Commercial Debts (Interest) Act 1998, you're entitled to:

• Statutory interest: 8% per annum above the Bank of England base rate (currently 4.5%, so 12.5% total) on the outstanding amount, calculated from the day after the payment was due.
• Fixed compensation: £40 for debts up to £999.99, £70 for debts £1,000–£9,999.99, £100 for debts of £10,000+.

You don't have to claim interest, but you should. It signals seriousness and compensates you for the cost of being kept waiting.

8. Payment instructions

Provide your bank details or a payment link. Make it as easy as possible for them to pay. Remove any friction.

9. Alternative dispute resolution

Mention that you're open to mediation or negotiation as an alternative to court proceedings. Courts look favourably on parties who've offered ADR.

10. The consequence

State clearly: if payment or a satisfactory response is not received within the deadline, you will issue court proceedings without further notice. You may also claim court fees, interest, and costs.

Free Letter Before Action Template (Formal — Post or PDF)

Copy this template, replace the [BRACKETED] sections with your details, and send it. This template complies with the Pre-Action Protocol for Debt Claims.

Top tip: Use "Yours faithfully" if you addressed the letter to "Dear Sir/Madam" and "Yours sincerely" if you used their name. Small detail, but it signals professionalism.

Email Version: Less Formal, Still Legally Valid

Not every situation calls for a posted letter on heavyweight paper. If your entire client relationship has been conducted over email, an email LBA is perfectly valid. Courts have accepted email as a legitimate method of service for Letters Before Action.

The key differences: slightly less formal language, same legal content, and you should request a read receipt or use an email tracking tool so you have evidence of delivery.

How to Send Your Letter Before Action

How you send the LBA matters. You need to be able to prove the debtor received it. Here's what best practice looks like:

Option 1: Royal Mail Signed For (recommended)

Send the letter via Royal Mail Signed For (previously called recorded delivery). This gives you a tracking number and a signature on delivery. Cost is around £2.25 on top of standard postage. Keep the proof of posting receipt—you'll need it if the case goes to court.

Option 2: Email with read receipt

Send the email version with a read receipt enabled. If your email client supports it, use delivery confirmation too. Take a screenshot of the sent email and any read receipt confirmations. Some freelancers use tools like Mailtrack to verify the email was opened.

Option 3: Both (belt and braces)

For maximum impact and legal protection, send both. Post the formal letter and send the email on the same day. Reference in the email that a hard copy has also been sent by Signed For delivery. This is what we'd recommend for debts over £1,000.

What to Include: The Checklist

Before you send, run through this quick checklist to make sure your LBA is protocol-compliant:

• ✅ Your full name/business name and contact details
• ✅ The debtor's full legal name and address
• ✅ Clear subject line identifying it as a Letter Before Action
• ✅ Invoice number, date, and original amount
• ✅ Description of the work/services provided
• ✅ Payment due date and how many days overdue
• ✅ Dates of previous reminders sent
• ✅ Interest calculation with reference to the Late Payment of Commercial Debts Act 1998
• ✅ Fixed compensation amount claimed
• ✅ Total amount now due
• ✅ Payment deadline (14 days for payment)
• ✅ Bank details for payment
• ✅ Offer of alternative dispute resolution
• ✅ 30-day response window for disputes
• ✅ Clear statement that court proceedings will follow
• ✅ Mention of CCJ consequences

If you've ticked everything, you're good to go.

What Happens After You Send It

You've posted the letter, sent the email, and now you wait. Here's what typically happens:

Scenario 1: They pay (most common)

Around 70–80% of the time, the debtor pays within the 14-day window. The words "court proceedings" are remarkably motivating. The LBA cuts through all the noise and tells them this has moved from an annoying email thread to a real legal situation.

Scenario 2: They get in touch to negotiate

Some debtors will contact you to propose a payment plan or partial payment. Whether you accept is up to you—but if they're making a genuine effort and the alternative is months of court proceedings, a structured payment plan might be the pragmatic choice. Get any agreement in writing.

Scenario 3: They dispute the debt

If the debtor responds within 30 days with reasons for disputing the debt, you need to consider their response carefully. If you believe the dispute is unfounded, you can still proceed to court—but you should respond to their points first. Courts expect both parties to have attempted to resolve the dispute before proceedings are issued.

Scenario 4: Complete silence

If 30 days pass with no response, no payment, and no acknowledgement, you're free to issue court proceedings. Their silence actually helps your case—it demonstrates they had every opportunity to engage and chose not to.

What If They Still Don't Pay?

If the LBA doesn't work, it's time for the next step: court proceedings. For most freelancer invoices (debts under £10,000), this means the Small Claims Track of the County Court.

Here's a quick overview of what comes next:

1. File a claim online via Money Claims Online (for debts under £100,000). Court fees range from £35 to £455 depending on the amount.
2. The debtor is served with your claim and has 14 days to respond (plus 5 days for service).
3. If they don't respond: You can request a default judgment—a court order requiring them to pay, without a hearing.
4. If they defend: The case is allocated to the Small Claims Track (for debts under £10,000). There may be a hearing, but many are resolved on paper.
5. If you win: You get a County Court Judgment (CCJ) against them, and you can recover the debt, interest, court fees, and compensation.

For a detailed walkthrough of the court process, read our guide: Taking a Client to Small Claims Court as a Freelancer.

The entire process from LBA to judgment can take as little as 6–8 weeks if they don't defend, or 3–6 months if they do. Either way, your LBA is the foundation—without it, none of the above can happen.

Tips for Making Your LBA More Effective

The template above will do the job. But here are a few extra tips to maximise the chances of getting paid without going to court:

• Keep emotion out of it. No matter how frustrated you are, the LBA should read like it was written by a calm, professional person who is simply following a process. Angry letters are easy to dismiss. Clinical ones are terrifying.
• Be precise with numbers. Vague amounts undermine your credibility. Show exactly how you've calculated interest and compensation. Courts love precision.
• Attach copies of the original invoice and contract. Make it easy for them to verify the debt. If they have to dig through their own records, you're giving them an excuse to delay.
• Don't threaten anything you won't do. If you say you'll go to court, be prepared to actually do it. Empty threats teach debtors that they can ignore you.
• Send it on a Tuesday or Wednesday. Odd tip, but letters arriving on Monday get lost in the pile, and Friday letters get forgotten over the weekend. Midweek delivery gets the most attention.

And finally: don't wait too long to send the LBA. Many freelancers spend months on the polite chasing stage, hoping the client will pay. If you've sent two or three reminders with no result, it's LBA time. Every week you wait is another week of unpaid interest and stress.

A Letter Before Action isn't aggressive. It's professional. It's the adult version of "I've asked nicely, now I'm asking formally." The client had their chance to do the right thing. Now the process kicks in.