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Letter before action template (UK)
A letter before action is the last formal warning before a court claim. Here’s what it must include, how long to give, and two copyable templates: one for a company and one for an individual or sole trader.
This is a guide, not legal advice. It covers England and Wales. Rules differ in Scotland and Northern Ireland. Check your contract, and take advice from a solicitor if you’re unsure or the amount is large.
When to send one
Send it once your reminders and final demand have been ignored. Courts in England and Wales expect you to have written to the other side before you sue. If you don’t, the court can take it into account, including when deciding costs and interest. See the Practice Direction on Pre-Action Conduct.
Who are you writing to? It changes the rules
| A company or LLP | An individual or sole trader | |
|---|---|---|
| Rules that apply | Practice Direction – Pre-Action Conduct | Pre-Action Protocol for Debt Claims |
| Time to reply | A reasonable period. 14 days is common for a straightforward debt | At least 30 days |
| What to enclose | Copies of the unpaid invoices | The Protocol’s Information Sheet and Reply Form (including the financial statement), plus the invoices |
| Statutory interest and compensation | Can usually be claimed (business-to-business only) | Not available against a consumer. A sole trader buying for their business is different, so take advice |
The Debt Claims Protocol applies when a business is claiming payment from an individual, and that includes a sole trader. Download the Information Sheet and Reply Form from the Protocol page on justice.gov.uk (Annex 1) and send them with your letter.
What every letter before action should include
- Your details and theirs. For a company, use its registered office address from Companies House.
- What you supplied, the invoice numbers, dates and amounts, and when payment was due.
- The total now due and how it is worked out, including any interest or compensation you’re claiming.
- A clear deadline date, and exactly how to pay.
- An invitation to say if they dispute the debt, and openness to a payment plan or mediation.
- What you’ll do if they don’t pay or reply: start a court claim.
Template 1: to a company (14 days)
Letter
[Your business name] [Your address] [Date] [Company name] [Registered office address] By post and email Dear Sir or Madam, Letter before action: unpaid invoice [number], £[total now due] We supplied [description of the goods or work] to you on [date(s)] and invoiced you on [invoice date] for £[invoice amount], invoice number [number]. Payment was due on [due date]. Despite our reminders of [dates], the invoice remains unpaid. [If claiming:] Under the Late Payment of Commercial Debts (Interest) Act 1998 we are entitled to statutory interest at 8% a year above the Bank of England base rate from [the day after the due date], and fixed compensation of £[40/70/100]. The amount now due is: Unpaid invoice £[amount] Statutory interest to [date] £[amount] Fixed compensation £[40/70/100] Total £[total] Interest continues at £[daily amount] a day. Please pay £[total] within 14 days of the date of this letter, by [deadline date], to: [Account name], sort code [00-00-00], account [00000000], reference [invoice number] If you dispute any part of this debt, please tell us in writing by the same date, giving your reasons and copies of any documents you rely on. We are willing to consider a payment plan, or mediation if you think it could resolve this. If we receive neither payment nor a response by [deadline date], we intend to issue a claim in the County Court without further notice. We will refer the court to this letter and to the Practice Direction on Pre-Action Conduct, which allows the court to take a failure to respond into account when deciding costs and interest. Yours faithfully, [Name] For and on behalf of [your business name] [Phone] · [email]
Template 2: to an individual or sole trader (30 days)
Letter
[Your business name] [Your address] [Date] [Customer's full name] [Their home address] By post and email Dear [Mr/Ms/Mx surname], Letter of claim: unpaid invoice [number], £[amount] We carried out [description of the work] at [address] on [date(s)] and invoiced you on [invoice date] for £[amount], invoice number [number]. Payment was due on [due date]. A copy of the invoice is enclosed. Despite our reminders of [dates], the invoice remains unpaid. The amount now due is £[amount]. [If your contract allows interest or charges, set out the amount and how it is calculated here. If it doesn't, leave this out.] Please pay £[amount] to: [Account name], sort code [00-00-00], account [00000000], reference [invoice number] Or contact us at [phone/email/address] to discuss paying by instalments. We enclose the Information Sheet and Reply Form from the Pre-Action Protocol for Debt Claims, including a financial statement. Please read the Information Sheet. If you do not pay, please complete the Reply Form and return it to us at the address above within 30 days of the date of this letter, by [deadline date]. If you dispute the debt, please say so on the Reply Form and tell us why. If you need time to get advice, you can say this on the form too. Free independent advice is available from the organisations listed on the Information Sheet. If we receive neither payment nor a completed Reply Form within 30 days of the date of this letter, we may start court proceedings to recover the debt without further notice. Yours sincerely, [Name] [Your business name] [Phone] · [email] Enclosures: copy invoice; Information Sheet; Reply Form; Financial Statement
How to send it
- Send it by post, with a free certificate of posting from the Post Office or by recorded delivery, and by email as well if you have an address.
- Keep a copy of the letter, the enclosures and proof of sending.
- Diary the deadline. If they reply with a dispute or an offer, answer it in writing.
If the deadline passes
You can make a court claim for money online through GOV.UK. Claims up to £10,000 usually go to the small claims track. There is a court fee, which you can add to your claim. If you’re a small business owed money by a larger one, the Small Business Commissioner may be able to help first. Check whether you’re eligible on their site.
Work out exactly what’s owed
Put in the invoice amount and due date, and the free invoice checker tells you how many days overdue it is and creates dated reminder letters you can copy.
Check an invoice – freeLet us send these for you
Overdue Chaser sends the friendly, firm and final reminders on schedule and stops the moment you mark the invoice paid. The letter before action only goes once you’ve approved it. 14-day free trial on every plan.
Start a free trial or check an invoice freeRelated guides
- Polite payment reminder email templates, to send before this letter.
- Customer won’t pay for work done? A step-by-step guide for trades.
Sources: Practice Direction – Pre-Action Conduct and Protocols · Pre-Action Protocol for Debt Claims · GOV.UK – statutory interest · GOV.UK – debt recovery costs · GOV.UK – make a court claim for money