Flat Fee Demand Letter for the United Kingdom

Flat Fee Demand Letter Template for England and Wales

A Flat Fee Demand Letter is a formal written communication used in England and Wales to request payment for services or goods provided at a previously agreed fixed price. The document outlines the amount due, payment terms, and consequences of non-payment, while complying with the Pre-Action Protocol for Debt Claims and relevant legislation such as the Late Payment of Commercial Debts (Interest) Act 1998. It serves as a crucial step in the debt recovery process before pursuing legal action.

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What is a Flat Fee Demand Letter?

The Flat Fee Demand Letter is a essential business document used when a fixed-sum payment remains outstanding despite the completion of agreed services or delivery of goods. This document is particularly relevant in England and Wales, where it forms part of the formal debt recovery process and must comply with specific legal requirements. The letter typically includes detailed information about the original agreement, the amount owed, payment terms, and consequences of non-payment. It serves as both a formal reminder and a prerequisite to legal action, demonstrating the creditor's attempt to resolve the matter amicably before pursuing court proceedings.

What sections should be included in a Flat Fee Demand Letter?

1. Sender Details: Full contact information of the party sending the demand

2. Recipient Details: Full contact information of the debtor

3. Date: Date of the demand letter

4. Amount Owed: Clear statement of the exact amount due

5. Payment Terms: Original payment terms agreed upon

6. Due Date: Deadline for payment

7. Payment Instructions: How and where to make the payment

8. Consequences of Non-Payment: Clear statement of actions to be taken if payment isn't received

What sections are optional to include in a Flat Fee Demand Letter?

1. Interest Calculation: Details of statutory interest calculation when claiming for overdue payments

2. Previous Communications: Reference to prior attempts to collect the debt

3. Payment Plan Options: Alternative payment arrangements when installment payments are acceptable

What schedules should be included in a Flat Fee Demand Letter?

1. Original Invoice: Copy of the original invoice(s)

2. Statement of Account: Detailed breakdown of amounts owed

3. Contract Extract: Relevant sections of the original agreement

4. Payment History: Record of any partial payments made

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Demand Letter

Sector

Marketing

Cost

Free to use
Industries

Late Payment of Commercial Debts (Interest) Act 1998: Key legislation governing commercial debt recovery, including statutory rights to claim interest, compensation for late payment, and applicable interest rates for overdue commercial debts

Limitation Act 1980: Establishes time limits for bringing claims (generally 6 years for simple contracts) and determines when the limitation period begins

Late Payment of Commercial Debts Regulations 2013: Updates provisions on payment terms, sets maximum payment periods, and establishes statutory compensation levels for late commercial payments

Common Law Contract Principles: Fundamental legal principles governing contract formation, terms of agreement, and elements constituting breach of contract under English law

Pre-Action Protocol for Debt Claims: Procedural requirements for debt recovery including mandatory information in demand letters, response timeframes, and required documentation

Consumer Credit Act 1974: Legislation governing consumer debt relationships, including consumer protection provisions and required information disclosures for consumer debtors

Consumer Rights Act 2015: Framework for consumer rights including requirements for fairness of terms and transparency in consumer contracts and communications

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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