Letter before action template
A letter before action is the formal warning you send before making a court claim for an unpaid invoice. Courts expect one, and it often gets you paid on its own.
What it must include
Who you are, the invoice details and amount owed, how the total is worked out (including any interest and fees), how to pay, a clear deadline, and that you'll go to court if it isn't paid. Ask them to say if they dispute the debt.
How long to give
For a business customer, 14 days is typical. If your customer is a sole trader or individual, the Pre-Action Protocol for Debt Claims applies: give 30 days and include the required information sheet and reply form.
Free template (business customers)
Subject: Letter before action: invoice #[number] [Date] Dear [name], We are writing about invoice #[number] dated [date] for £[amount], which was due on [due date] and remains unpaid despite our reminders on [dates]. Under the Late Payment of Commercial Debts (Interest) Act 1998 we are entitled to statutory interest of 8% a year above the Bank of England base rate, currently £[interest], and fixed compensation of £[fee]. The total now due is £[total]. Please pay this in full within 14 days of the date of this letter, to [payment details]. If you dispute any part of this debt, please tell us in writing within that period, giving your reasons. If we do not receive payment or a response within 14 days, we intend to start court proceedings without further notice, which may increase the amount you owe through court fees and further interest. Yours sincerely, [your name] [business name and address]
What happens next
If they pay, you're done. If they don't reply, you can make a claim online through GOV.UK Money Claims. Keep copies of your invoice, reminders and this letter, since the court may ask for them.
Common questions
What is a letter before action?
It is a formal written warning that you will start court proceedings if an unpaid debt isn't settled by a deadline. Courts expect you to send one before making a claim.
How long should a letter before action give the debtor?
For a business customer, 14 days is typical. If the customer is a sole trader or individual, the Pre-Action Protocol for Debt Claims applies and you should give 30 days.
Can I add interest and late fees in a letter before action?
For business-to-business debts, yes. You can include statutory interest at 8% above the Bank of England base rate and a fixed fee of £40, £70 or £100.
Do I need a solicitor to send a letter before action?
No. Businesses can send their own letter before action, as long as it clearly sets out the debt, how it's worked out, how to pay and the deadline.
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