A template final demand and "letter before action" for an unpaid invoice for goods or services that is now significantly overdue, for use in England & Wales.
How to use this template - Replace every
[SQUARE-BRACKET]field before use. - This is the last step before court. If you may issue proceedings, follow the relevant Pre-Action Protocol (for a debt owed by an individual or sole trader, the Pre-Action Protocol for Debt Claims requires specific information and a reply period, usually 30 days). - For business-to-business debts, you can usually claim statutory interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998 (clause referenced below). - Keep proof of sending. Have a solicitor review for larger or disputed debts.
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[YOUR NAME / BUSINESS] [ADDRESS]
[DATE]
[DEBTOR NAME] [ADDRESS]
Dear [NAME]
FINAL DEMAND / LETTER BEFORE ACTION, Invoice [NUMBER]
We refer to invoice [NUMBER] dated [DATE] for £[AMOUNT], in respect of [DESCRIBE GOODS/SERVICES] supplied to you. Payment was due on [DUE DATE] and remains unpaid, despite our earlier reminder(s) of [DATE(S)].
Amount now outstanding:
- Principal: £[AMOUNT]
- [Statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998: £[AMOUNT] (at 8% above the Bank of England base rate)]
- [Fixed statutory compensation: £[40/70/100] depending on the size of the debt]
- Total due: £[TOTAL]
We require payment of the total sum within [14 / 30] days of the date of this letter, by [PAYMENT METHOD/DETAILS].
If we do not receive payment, or a satisfactory proposal, by [DEADLINE DATE], we intend to issue county court proceedings to recover the debt, together with interest and costs, without further notice. If court proceedings are issued and judgment is entered against you, that judgment may affect your credit rating if it is registered and remains unpaid.
If you dispute that this sum is owed, please write to us by the deadline explaining the basis of your dispute and enclosing any relevant documents, so the matter can be addressed.
[For debts owed by individuals/sole traders, include the information and reply form required by the Pre-Action Protocol for Debt Claims.]
We hope court action can be avoided and look forward to your prompt payment.
Yours [faithfully/sincerely]
[NAME] [BUSINESS]
--- This template is general information about the law of England & Wales as at 2026, not legal advice. Follow the correct pre-action protocol and have a qualified solicitor review for larger or disputed debts. Governing law: England & Wales.