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Rules for invoices in

Payment reminder letter template

Fill in your invoice details to create a polite payment reminder. From the second reminder, statutory interest and fixed compensation under the Late Payment Act are added automatically.

For invoices between businesses only. Different rules apply to consumers.Check the amounts in the interest calculator

1Your details

Shown as the sender and signature

Printed under the signature line

e.g. sort code and account number, or a payment link

2Customer and invoice

Reminder

Your letter

Edit the text freely before you send it.

Statutory interest and fixed compensation apply to business-to-business invoices only. General information, not legal advice.

What every payment reminder should include

A reminder gets paid faster when the customer can act on it without searching for anything.

  • The invoice number and invoice date, so accounts can find it straight away
  • The original amount and the due date that has passed
  • From the second reminder: statutory interest and the fixed sum, shown as separate lines
  • A specific payment date, such as 29 May 2026, rather than “within 7 days”
  • How to pay: sort code and account number, or a payment link
  • A named contact and a phone number or email address for questions

When to send each reminder

There is no legal schedule. This is the rhythm most small businesses use.

  1. 3–7 days late

    Friendly reminder

    Assume it was missed. No fees, a short note and a new payment date.

  2. About 14 days late

    Second reminder

    Add statutory interest and the fixed sum, and show how they were calculated.

  3. About 30 days late

    Final reminder

    State the full amount, give a last date about 7 days away and say that you will consider further steps.

Payment reminder letter samples

Copy the wording and replace the parts in square brackets, or use the generator above to fill them in for you.

1. Friendly reminder

Subject: Invoice [number] – friendly reminder

Dear [name], This is a friendly reminder that invoice [number] of [invoice date] for [amount] was due on [due date] and is still open in our records. If you have already paid, thank you, and please ignore this message. Otherwise, we would be grateful if you could arrange payment by [date] to [account details]. Kind regards, [your name]

2. Second reminder with interest

Subject: Invoice [number] – second reminder

Dear [name], We wrote to you on [date of first reminder] about invoice [number] for [amount], which was due on [due date]. We have not yet received payment. Under the Late Payment of Commercial Debts (Interest) Act 1998 we are adding statutory interest of [rate]% a year, which comes to [interest] up to today, and fixed compensation of [£40/£70/£100]. Please pay the total of [total] by [date] to [account details]. Kind regards, [your name]

3. Final reminder

Subject: Invoice [number] – final reminder

Dear [name], Despite our reminders of [date] and [date], invoice [number] remains unpaid. Including statutory interest and fixed compensation, the amount due is now [total]. Please pay this amount in full by [date]. If we do not receive payment or hear from you by then, we will consider further steps to recover the debt. Kind regards, [your name]

Do I need to send a reminder before charging interest?

No. Statutory interest runs automatically from the day after the payment date for business-to-business invoices. You do need to tell your customer that you are claiming it and how much, which is what the second reminder does.

Keep the tone polite and factual

Most late payments are caused by process, not bad intent: an invoice in the wrong inbox, a missing purchase order number or a payment run that was missed. A calm, specific reminder protects the relationship and is easier to act on than an angry one.

Keep a copy of every reminder and note the date you sent it. If the invoice stays unpaid, that record shows what you asked for and when.

FAQ

When should I send a payment reminder?

Many businesses send a friendly reminder a few days after the due date, a second reminder about two weeks later, and a final reminder after about a month.

Can I add interest to a reminder?

Yes, for business customers. The Late Payment of Commercial Debts (Interest) Act 1998 allows statutory interest at 8% above the Bank of England base rate plus a fixed sum of £40, £70 or £100.

Should I email or post the letter?

Either works. Email is fastest; use “Print or save as PDF” to attach it as a PDF or to post a paper copy.

How long should I give the customer to pay?

7 to 14 days is common. Give a specific date rather than a number of days, so there is no doubt about the deadline.

Can I charge an admin fee for each reminder?

Not unless your contract says so. For business customers, the statutory fixed sum (£40, £70 or £100 per invoice) is meant to cover recovery costs, and you can also claim reasonable costs above it.