Late Payment Invoice Template for England and Wales

When a business invoice remains unpaid beyond its due date, you need a Late Payment Invoice to formally demand payment while claiming your statutory rights under England and Wales law. This document serves as both a payment reminder and a legal notice of additional charges, helping you recover debts while maintaining professional relationships.

When do you need this document?

You should issue a Late Payment Invoice when any commercial invoice remains unpaid after the agreed payment terms have expired. This applies to business-to-business transactions where goods have been delivered or services completed, but payment has not been received within the specified timeframe. The document becomes particularly important when dealing with repeat late payers, as it establishes a formal record of overdue amounts and demonstrates your commitment to enforcing payment terms. You can also use this template when preparing for formal debt recovery proceedings, as it provides evidence of your attempts to collect payment through standard commercial channels.

Key legal considerations

Your Late Payment Invoice must clearly reference the original invoice details including number, date, amount, and payment terms to establish the legal foundation for your claim. Under the Late Payment of Commercial Debts (Interest) Act 1998, you have the right to claim statutory interest at 8% plus the Bank of England base rate from the day after payment was due. Additionally, the Late Payment of Commercial Debts Regulations 2013 entitle you to fixed compensation: £40 for debts under £1,000, £70 for debts between £1,000-£9,999, and £100 for debts over £10,000. You must ensure your invoice includes all mandatory company information required by the Companies Act 2006, including your registered company name, number, and registered office address. Be aware that these statutory rights only apply to commercial transactions between businesses, not consumer contracts.

Legal requirements in England and Wales

Your Late Payment Invoice must comply with multiple pieces of legislation to be legally enforceable. Under the Companies Act 2006, all business documents must display your company's registered name, registration number, registered office address, and place of incorporation. If you're VAT registered, you must include your VAT number in accordance with the Value Added Tax Act 1994. The Late Payment of Commercial Debts (Interest) Act 1998 requires you to clearly state the interest rate being applied and show the calculation method used to determine additional charges. Your invoice should specify the number of days the payment is overdue and provide a breakdown of interest accrued to date. The Late Payment of Commercial Debts Regulations 2013 mandate that you include notification of the debtor's right to challenge the debt and your right to claim compensation for recovery costs. You must also provide clear payment instructions including acceptable payment methods, your bank details, and a revised payment deadline that allows reasonable time for settlement.