Unpaid invoice? The UK builder's guide to letters before claim, statutory interest and small claims

Late payment is the quiet killer of trade businesses. Here''s the process that actually gets builders paid — and the tools EstiMate now gives you to run it in minutes.

The escalation ladder

• Day 1 overdue: polite reminder
• Day 7: firm reminder
• Day 14+: formal letter before claim
• Then: Money Claim Online (MCOL) — and most debtors pay when the claim form lands

What you can add to the debt

If your client is a business, the Late Payment of Commercial Debts (Interest) Act 1998 entitles you to statutory interest at 8% plus the Bank of England base rate, and fixed compensation on top: £40 on debts under £1,000, £70 up to £10,000, £100 above that.

If your client is a consumer, the Pre-Action Protocol for Debt Claims applies — a 30-day letter with the official Information Sheet and Reply Form — and you can claim 8% interest under the County Courts Act when you issue.

The court bit, in plain English

Claims up to £100,000 go through Money Claim Online. Under £10,000 usually means the small claims track: informal, designed for people without solicitors, with free mediation offered first. If they ignore a judgment, enforcement options include bailiffs, attachment of earnings and charging orders.

The 60-second version in EstiMate

EstiMate''s new Legal toolkit generates the correct letter before claim for your situation — business or consumer rules applied automatically, interest and compensation calculated to the day — plus access-refused letters, suspension-of-work notices, a full dispute playbook and an AI helper for the grey areas.

This is general information, not legal advice — for large or complex disputes, speak to a construction solicitor.

The Legal toolkit is included in EstiMate.