An unpaid invoice becomes harder to collect when you let it drift without a clear next step. UK debt collection timelines should balance prompt action with the legal time needed to resolve a dispute fairly.
You don’t need to wait six months before escalating a sound commercial claim. However, you do need a complete evidence file, proportionate communication, and the right court process if payment still doesn’t arrive.
A disciplined escalation plan protects your cash flow while preserving the option to take legal action.
Key Takeaways
- Most simple contract claims in England and Wales have a six-year limitation period, usually running from the contractual due date. A reminder or final demand does not stop the clock.
- Use a firm collection calendar: confirm the debt, send reminders, issue a final demand, send a proportionate letter before action, and then consider court action or specialist recovery.
- Adjust the timetable when the debtor raises a genuine dispute, but require evidence and set clear response dates so unsupported complaints do not cause indefinite delay.
- Statutory interest and recovery costs must be legally due, contractually supported where relevant, and clearly calculated. A CCJ confirms the debt but does not guarantee payment.
- Check the applicable jurisdiction, pre-action protocol, limitation or prescription rules, and enforcement options before escalating, particularly for Scottish, Northern Irish, or overseas debts.
Start with the legal deadline
Your internal collection schedule might run over days or weeks. The legal deadline is much longer, but it should never become a reason to delay.
The six-year clock on an unpaid invoice
In England and Wales, most unpaid invoices arise from a simple contract. Under the Limitation Act 1980, you usually have six years from the date the cause of action accrued to bring a court claim.
For a straightforward invoice, that is normally the contractual due date. It is not the invoice date, the date you first sent a reminder, or the date you gave up chasing.
Check the contract before calculating the deadline. A staged payment agreement, retention clause, acceptance condition, or later agreed payment date can change when the claim becomes due. Confirm when the cause of action accrued.
You must start court proceedings within the limitation period. A reminder, final demand, or letter before action does not stop the clock.
Don’t apply this simple-contract rule automatically to unsecured credit debts, mortgage shortfalls, council tax arrears, benefit overpayments, or joint debts. Each may involve different limitation, liability, or enforcement rules.
Acknowledgment and part-payment can reset time
A written and signed acknowledgment of the debt can start a fresh six-year period. So can a part-payment, provided the debt is not already statute barred.
Keep emails, payment records, settlement proposals, and any payment plan. They may decide whether your claim remains in time.
A final demand sent in year five does not extend limitation. A qualifying acknowledgment or court claim can.
A statute barred debt does not automatically vanish from your accounting records. Yet you normally cannot force payment through court if the debtor raises limitation as a defence. Later acknowledgment or payment cannot revive a claim that was already time barred.
If you receive a limitation defence, pause escalation and review the evidence. Likewise, if you are responding to an old demand, avoid casually acknowledging liability before you understand the dates.
Use a firm commercial escalation calendar
For a clear, undisputed business invoice, early action is usually more effective than a long sequence of vague reminders. The following timetable is an operational guide, not a statutory deadline.
| Timing | Your practical action | What to record |
|---|---|---|
| Due date to day 7 | Confirm the invoice reached the right contact and ask for a payment date. | Invoice, purchase order, delivery evidence, contact notes. |
| Days 8 to 14 | Send a written reminder with the overdue balance and payment instructions. | Copy of the reminder and any reply. |
| Days 15 to 30 | Issue a final demand, and claim statutory interest and fixed compensation only where each is legally due and supported by the contract or statute. Set a clear deadline. | Statement of account and interest calculation. |
| Days 31 to 45 | Send a letter before action if payment has not arrived. | Contract, correspondence, and dispute history. |
| After day 45 | Consider court action, settlement, or referral to a specialist collector. | A complete evidence pack, including retention of title if the contract contains such a clause, and asset information. |
Adjust the pace where the customer raises a genuine dispute. If they say goods were defective, services were incomplete, or an invoice was never authorised, ask for detail and investigate it. If they accept the balance but need staged payment, document a payment plan.
However, don’t allow an unsupported complaint to suspend the matter indefinitely. Set a date for their evidence and respond in writing.
A strong collection calendar gives a customer room to engage, but it also makes the consequence of silence clear.
Interest and costs in B2B debt recovery
Late-payment charges can make delay less attractive, although they rarely solve a weak file. Only claim sums you can explain and support.
When statutory interest applies
For qualifying commercial debts, you may be able to charge statutory interest at 8% plus the Bank of England base rate. The government’s statutory interest rules for commercial debt explain when this applies.
You can also claim fixed compensation for recovery costs: £40 for debts below £1,000, £70 for debts from £1,000 to £9,999.99, and £100 for debts of £10,000 or more. Don’t confuse this statutory late-payment compensation with fixed recoverable costs available under court rules. The government also sets out fixed recovery-cost compensation for late commercial payments.
Your contract matters. If it provides a different interest rate, you cannot automatically add statutory interest as well. Check whether the agreed clause gives you a substantial remedy before making the demand.
Show the calculation clearly
State the principal invoice balance, the due date, the calculation date, and the statutory interest rate. Explain any fixed compensation and how the debtor can pay. List fixed compensation separately from interest. Include fixed recoverable costs where the applicable court rules permit them. Attach a current statement if several invoices are overdue.
Accuracy matters because an overstated demand can create an avoidable dispute. It can also weaken your position if the case later reaches court.
Match the letter before action to the debtor
A letter before action is more than a stern reminder. It is your final chance to set out the claim, invite payment or a reasoned response, and show that court action is proportionate.
The 30-day Debt Claims Protocol
The Pre-Action Protocol for Debt Claims applies when a business, including a sole trader or public body, claims payment from an individual, including a sole trader.
This pre-action protocol requires a detailed Letter of Claim and supporting information. The individual has 30 days from the date of the letter to return the Reply Form. If they respond, provide documents, or seek debt advice, the timetable can extend further.
Do not treat this as a universal 30-day rule for company-to-company invoice claims. It is a debtor-specific protocol.
Company debtors need a proportionate deadline
For an ordinary company-versus-company claim, give enough information to assess the debt, including the contract, invoices, due dates, and evidence of supply. Your letter before action should also identify any statutory interest, fixed compensation, or fixed recoverable costs claimed, where applicable. A default notice under regulated credit rules is not interchangeable with it, particularly where the file concerns unsecured credit debts.
A 7 to 14-day deadline often suits an undisputed B2B invoice. A larger, older, or document-heavy claim may need more time. Investigate any substantial dispute and consider settlement or mediation where appropriate.
A statutory demand is a formal insolvency route, not a routine collection letter. Don’t use a statutory demand as a routine debt recovery tactic. Insolvency proceedings are unsuitable where the debt is genuinely disputed on substantial grounds.
Court claims, CCJs, and enforcement steps
Court action changes the pressure on a debtor, but it also adds fees, time, and procedural duties. Issue a claim only after checking the debtor’s legal name, trading status, registered address, and ability to pay. For unsecured credit debts, a judgment still may not produce recovery if the debtor has few assets.
Before issue, confirm that the underlying commercial claim meets the relevant requirements for statutory interest and fixed compensation. Check likely recoverable court costs, including fixed recoverable costs where applicable.
Never ignore the 14-day response period
Once court papers are served, a debtor must act promptly. They can pay, admit the debt, file a defence, or acknowledge service. The government’s court-claim response guidance explains the available options.
A defendant normally has 14 days after service to respond. Filing an acknowledgment of service usually extends the time to file a defence to 28 days after service of the particulars of claim.
If the debtor does nothing, you can usually request default judgment. If they defend, assess the defence closely and preserve every document that supports your claim. A disputed case may need witness evidence, disclosure, and a hearing.
A CCJ is not the same as payment
A County Court Judgment confirms what is owed. It may include fixed recoverable costs where the rules permit, but you may still need enforcement if the debtor doesn’t pay. A CCJ may also affect the debtor’s credit file through credit reference agencies.
Your options can include a warrant or writ of control, a third-party debt order, a charging order, or an order to obtain information. Where the legal and value criteria are met, consider transfer to High Court enforcement using high court enforcement officers. A statutory demand is a separate insolvency route, not ordinary judgment enforcement.
For example, securing a judgment against property doesn’t always produce immediate cash. A control-of-goods route may be more useful where the debtor has valuable business assets.
The original six-year limitation period does not mean a CCJ expires after six years. However, in England and Wales you generally need court permission to issue a warrant or writ of control six years or more after judgment. Build enforcement planning into the claim process rather than treating judgment as the finish line.
Jurisdiction can change the collection deadline
The contract’s governing law may differ from the location of your office. Check the jurisdiction clause, the debtor’s place of business, and where its assets are located before issuing proceedings.
Scotland uses prescription, not the Limitation Act
Scottish law takes a different approach. Many contractual obligations are subject to a five-year negative prescription period, which can extinguish the obligation if it passes without interruption.
The start date and what interrupts prescription can be fact-sensitive. A relevant claim or acknowledgment may matter, so you shouldn’t apply the England and Wales six-year rule to a Scottish debt. Review the current Scottish prescription legislation before setting a deadline.
Northern Ireland also has separate limitation legislation and court procedures. Many simple contract claims have a six-year period, but you should confirm the local rule rather than rely on English procedure.
Overseas debtors need early planning
Post-Brexit enforcement depends on the country involved, the judgment date, treaty arrangements, and the contract’s jurisdiction clause. European Enforcement Orders, European Orders for Payment, and European Small Claims Procedure judgments are no longer recognised or enforceable in the UK in the former way.
Review the government’s cross-border civil claims guidance before starting proceedings against an overseas debtor.
If the debtor or its assets are abroad, International debt recovery support is most useful before you commit to a court route.
When a debt recovery agency adds value
A debt collection agency can help when your invoice is aged, high-value, disputed, cross-border, or tied to a personal guarantee. It should work from evidence, communicate professionally, and recommend escalation based on the debtor’s position. It forms one stage of the wider debt recovery process, not an automatic substitute for legal advice.
Before instructing a debt collection agency, prepare the signed contract, purchase order, invoices, statement of account, delivery or service evidence, correspondence, payment history, and details of every dispute. Tell the agency about limitation dates, insolvency concerns, and any settlement offers.
For debt recovery in the UK, ask how fees work, whether legal action needs separate authority, and how it handles mixed portfolios, including the distinction between unsecured credit debts and commercial invoice work. Ask how it negotiates and monitors a realistic payment plan. Ask whether it can recommend or arrange insolvency escalation, including a statutory demand, and confirm this won’t be used as a routine threat. Where regulated consumer credit activity is involved, check its position with the financial conduct authority and ask what reporting you’ll receive. You can use Debt Recovery Hub to find a suitable specialist based on the debt’s age, value, location, and complexity.
Frequently Asked Questions
How long do I have to collect an unpaid invoice in the UK?
In England and Wales, most simple contract claims must be brought within six years from when the cause of action accrued, usually the contractual due date. Scotland and Northern Ireland have different rules, so confirm the applicable jurisdiction before relying on this period.
Does sending a final demand extend the limitation period?
No. A reminder, final demand, or letter before action does not stop or reset the limitation clock. A qualifying written acknowledgment or part-payment may start a fresh period, but you should review the dates and evidence carefully.
How quickly should I escalate an overdue B2B invoice?
For a clear and undisputed invoice, you might send a reminder within the first two weeks, a final demand by days 15 to 30, and a letter before action around days 31 to 45. This is an operational guide rather than a statutory timetable, and genuine disputes may require investigation or a longer response period.
Is a 30-day response period always required before court action?
No. The 30-day timetable under the Pre-Action Protocol for Debt Claims applies to certain claims by businesses against individuals, including sole traders. Ordinary company-to-company invoice claims usually need a proportionate deadline, often 7 to 14 days, unless the claim is complex or disputed.
Does getting a CCJ mean the debt will be paid?
No. A County Court Judgment confirms the amount owed, but you may still need enforcement if the debtor does not pay. Options can include control of goods, a third-party debt order, a charging order, or other permitted enforcement routes.
A Timely File Beats a Long Chase
Your strongest position comes from acting soon after the due date, documenting every step, and escalating only when the claim is ready. A six-year legal deadline is a backstop, not a sensible credit-control policy.
A well-managed collection calendar combines prompt reminders, clear statutory charges, correct pre-action procedure, and realistic enforcement planning. This article provides general information, not legal advice.
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