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UK government and industry data on late payment
These are the real experiences of UK freelancers dealing with late-paying clients.
You delivered exactly what was agreed. The invoice went out. The due date passed. Silence. Now you're chasing someone who has your completed work and your money.
You don't want to damage the relationship. You keep telling yourself they'll pay soon. Meanwhile, your mortgage, your subscriptions, and your supplier bills don't wait.
One late client ripples across everything. You can't invest in your business. You can't take on new work because you're still waiting on the old work to be paid.
Drafting reminder emails. Deciding the right tone. Following up. Logging it all. For every hour chasing an invoice, that's an hour you're not billing.
Research consistently shows the reasons UK businesses cite for paying late:
30% of late payments in the UK are deliberate — larger companies using their supplier relationships as a form of short-term financing.
A surprisingly common reason. With automated, polite reminders, most of these resolve themselves within 24 hours.
12% of late payments are caused by invoice errors or disputes. RecoupIQ catches these before they stall.
Companies with cash constraints pay the loudest voices first. Consistent, professional follow-up moves you to the front of the queue.
This requires a different approach — payment plans, hardship escalation, or small claims. RecoupIQ identifies this pattern automatically.
The Late Payment of Commercial Debts (Interest) Act 1998 gives you automatic rights to charge statutory interest on any overdue B2B invoice — you don't need to include payment terms referencing it. It applies automatically.
Under the Late Payment of Commercial Debts (Interest) Act 1998, B2B invoices automatically accrue interest from day one of being overdue.
You can claim £40 on debts under £1,000, £70 on debts £1,000–£9,999, or £100 on debts over £10,000 — per invoice, per late payment.
If your costs of recovering the debt exceed the fixed fee, you can claim the difference in "reasonable" recovery costs.
The UK Small Claims Track lets you recover debts without a solicitor, for a filing fee of £35–£455 depending on the amount.
Research into late payment recovery shows three principles that consistently get invoices paid faster — without damaging client relationships.
The first reminder within 24 hours of a missed deadline recovers 60% more than a reminder sent a week later. Consistency matters more than tone.
60% faster recoveryAutomated, professional reminders are more effective than confrontational ones. Clients respond better when they don't feel accused.
3x higher response rateMentioning statutory interest in your first overdue reminder (professionally, not as a threat) increases payment rates significantly.
45% of debts paid by reminder 2RecoupIQ sends AI-generated, legally-compliant payment reminders on your behalf — professional, persistent, and fully automated.
Statutory interest is calculated automatically under the Late Payment of Commercial Debts Act 1998. No manual calculations. No awkward emails.