IPSE Late Payment Letter Template: Gentle Reminder

Chasing late payment

As a freelancer, late payment can seriously affect your cashflow and wellbeing, but it can often feel difficult to approach late-paying clients due to concerns around potentially damaging the relationship. This is why we have crafted three late payment template letters.

This is the first of 3 letters to send to chase a client who is late to make payment. Use this letter as a gentle reminder to a client who is late to make payment. The template includes the correct terminology and payment terms so that you can stick to your rights as a freelancer when it comes to late payment.

A follow-up letter and final demand letter can also be found in the IPSE Library and are available to IPSE members. 

Your late payment rights as a freelancer

Not only is late pay affecting freelancers’ businesses and their living costs but it is also taking up valuable time, with an average of 20 days a year spent chasing unpaid invoices.

It's vital that as a freelancer you know your rights so that you can have the right payment terms in place and confidently put them into effect if needed. These late payment letter templates already include the correct terminology to help with this.

Late Payment of Commercial Debts (Interest) Act 1998

The Late Payment of Commercial Debts (Interest) Act 1998 allows you to claim costs outlined in your invoice alongside any compensation. Even if this was not stated in your payment conditions, you could get compensation against public sector organisations and businesses with more than 50 employees. You can now also claim up to eight per cent interest on payments from other small businesses, starting from the day after the last day it should have been paid.

Late payment hub

Late payments are hugely damaging for freelancers at the best of times, but during the pandemic, they have been disastrous for many. We are working with the Small Business Commissioner to crack down on late and non-payment once and for all.

Late payment hub

Late payment webinars

IPSE hosts an extensive range of webinars throughout the year. IPSE members can register for upcoming webinars or access previous webinars that have been recorded to enhance your learning, even if you were unable to make the webinar at the time.

Late Payment


Meet the author

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IPSE is the leading association for contractors, consultants, interims, freelancers and the self-employed. We strive to bring our members the most comprehensive and useful range of information and services and all the latest news about what affects your business.