Key takeaways
- A letter before action is the last written warning before a court claim. Courts in England and Wales expect one, and you can send it yourself.
- A limited company client normally gets 14 days to reply in a straightforward case.
- A sole trader or private individual is covered by the Pre-Action Protocol for Debt Claims: enclose its forms and allow 30 days.
- Since 1 October 2026 the protocol also says to email the letter, if you have a personal email address for the client.
- Skip the letter and a court can cut your interest or order you to pay costs, even if you win.
A letter before action is the formal warning you send a client before you take them to court over an unpaid invoice. It says what's owed and how you worked it out, gives a date to pay by, and says you'll start a claim if they don't. Courts in England and Wales expect one, and you don't need a solicitor to send it. A limited company normally gets 14 days to reply. A sole trader or private individual gets stricter rules: set forms, 30 days, and the letter by post, plus email where you have one.
If you haven't sent reminders yet, start with what to do when a client isn't paying.
What the letter is for
The Practice Direction on Pre-Action Conduct says a court will expect both sides to have swapped enough information to understand each other's position and to have tried to settle first. For an unpaid invoice, this letter is your proof that you did.
It also protects your claim. Skip it and the court can order you to pay costs, or cut the interest on what you're awarded, even when you win.
You'll also see it called a letter before claim, a letter of claim or a final demand. What counts is what it says, not its heading.
Which rules apply depends on your client
Not sure what your client is? A limited company or LLP is listed on the Companies House register. Someone trading under their own name is usually a sole trader.
| Your client | Rules | Time to reply | What to enclose |
|---|---|---|---|
| Limited company or LLP | Practice Direction on Pre-Action Conduct | 14 days in a straightforward case | Key documents, such as the invoice |
| Sole trader | Pre-Action Protocol for Debt Claims | 30 days from the date on the letter | A statement of account and the protocol's forms |
| Private individual | Pre-Action Protocol for Debt Claims | 30 days from the date on the letter | As for a sole trader |
The Pre-Action Protocol for Debt Claims covers any business chasing a debt from an individual, sole traders included. It doesn't cover one company chasing another.
For interest, a sole trader is still a business, so the Late Payment of Commercial Debts (Interest) Act 1998 applies to them. A private individual isn't covered, so leave the Act out of their letter. Gov.uk explains the interest you can ask a court for instead.
What to put in the letter
Whoever your client is, include:
- your name and business name, and theirs (for a company, its registered office as well as your contact)
- the date of your contract, who it's between, and that they can ask for a copy
- each invoice's number, amount and due date, and when you sent reminders
- the total, how you got there, and whether interest is still running
- how to pay, and how to reach you to talk about it
- a deadline as a date, not "within 14 days"
- that you'll start a court claim if it isn't paid or answered by then, and that you're open to talking first
For a business client, add statutory interest at 8% a year above the Bank of England base rate, plus a fixed sum for recovery costs that rises with the invoice size. Our free late payment interest calculator works out both.
Keep the tone factual. Under section 40 of the Administration of Justice Act 1970, it's an offence to pass a letter off as official, to suggest not paying is a crime, or to harass someone with demands for payment.
A letter before action template
This version is for a business client. The notes below adapt it.
[Your name, trading as your business name]
[Your address and email][Date]
[Client name]
[Registered office or home address]Letter before action: unpaid invoice [number]
Dear [name],
Invoice [number], dated [date], for [the work] under our agreement dated [date], was due on [date]. £[amount] is still unpaid, despite reminders sent on [dates]. A copy is enclosed.
As payment is late, statutory interest is being added under the Late Payment of Commercial Debts (Interest) Act 1998 at 8% a year above the Bank of England base rate. It comes to £[amount] today and continues at £[amount] a day. Fixed compensation of £[amount] is also due. The total now owed is £[total].
Please pay £[total] by [date] to [bank details or payment link]. If you dispute any part of it, please say which part and why by the same date.
If payment or a reply hasn't arrived by then, [your business name] will start a court claim for the full amount, interest and costs. You're welcome to call before then to settle this, or to suggest mediation.
Yours sincerely,
[Your name]
- Company: give at least 14 days and send it to the registered office.
- Sole trader: give 30 days from the date at the top, and add the address for the Reply Form.
- Private individual: as for a sole trader, minus the interest paragraph.
Extra steps for a sole trader or individual
Date the letter at the top of the first page and post it that day, or the next day at the latest. If there's no written contract, say who agreed the work, what was agreed, and when and where. Enclose an up-to-date statement of account showing any interest added. Enclose the Information Sheet and Reply Form from Annex 1 and a Financial Statement form like the one in Annex 2; all three are printed at the back of the protocol. If they've offered to pay in instalments, say why that isn't acceptable.
They then have 30 days from the date at the top. If they return the Reply Form, wait at least 30 days from receiving it before you claim, longer if they need debt advice. If they ask for documents, the wait runs from when you send them. If you still can't agree, give at least 14 days' notice before you claim.
How to send it and keep proof
For a sole trader or individual, post comes first. An amendment to the protocol from 1 October 2026 says that if you have a personal email address for them, you should email the letter too. If you don't, use another personal electronic contact you have.
For a company, post it to the registered office and email it to the person you've dealt with. Either way, keep:
- a PDF of exactly what you sent, enclosures included
- proof of posting from the Post Office counter, or a signed-for service
- the sent email with the letter attached
That's your answer if the client says it never arrived.
What happens after the deadline
If they pay, confirm in writing that it's settled.
If they dispute part of it, read what they say before you file anything: both sets of rules expect you to take stock and see if a claim can be avoided. If the argument is about the work rather than the money, read what to do when a project goes wrong.
If they ignore it, you can claim. In England and Wales gov.uk sends new claims to Make a money claim, an online form; you may also see the older Money Claim Online mentioned. Our small claims guide covers the fee, mediation and getting a judgment paid, and what happens when a client goes bust covers a company in liquidation.
All of this is for England and Wales. Scotland and Northern Ireland have their own court processes, linked from mygov.scot and nidirect.
Have the dates ready before you need them
On Essential and Pro, switch on automatic reminders and HelloNoa sends them on weekdays, from three days before the due date to 30 days overdue, and each invoice lists the reminders sent and when. The signed contract and invoices sit under the same client, so the facts this letter needs are in one place.
Start for freeThe bottom line
Work out who your client is first, because that sets the rules. A company gets a plain letter and 14 days. A sole trader or individual gets the protocol's forms and 30 days, by post and email. Put the debt, the interest and a firm date in writing, keep proof it went out, and if the date passes with no reply, you're ready to claim.
Frequently asked questions
Do I need a solicitor to send a letter before action?
No. Nothing in the court rules requires a solicitor, and you can write and send it yourself. What matters is that it sets out the debt clearly, gives a fair deadline and, for a sole trader or individual client, follows the Pre-Action Protocol for Debt Claims.
How long should I give the client to pay?
For a limited company, the Practice Direction on Pre-Action Conduct treats 14 days as reasonable in a straightforward case. For a sole trader or private individual, the Pre-Action Protocol for Debt Claims gives them 30 days from the date at the top of the letter, and longer if they send back the Reply Form.
Is a final demand the same as a letter before action?
Often, yes: people use both names for the last letter before court. What a court looks at is the content: the amount owed and how it's worked out, a clear deadline, and a warning that you'll claim if it isn't paid. A letter headed final demand that leaves those out may not be enough.
Can I just email a letter before action?
For a company client the rules don't set a method, so post it to the registered office and email your contact to have a record of both. For a sole trader or individual, the protocol says to post it, and since 1 October 2026 to email it too if you have a personal email address for them. Email alone is only right if they've explicitly asked you not to use post.
Does this work for a client in Scotland?
No. The rules in this guide are for England and Wales. Scotland has its own court process, Simple Procedure for smaller claims, and its own rules, so check mygov.scot before you write.
Done reading? I keep an eye on your clients, contracts and invoices, and flag what's next.
