UK freelancer guide · costs and next steps
Unpaid Invoice Recovery Options for UK Freelancers
Choose the least expensive sensible next step, understand when mediation or an agency fits, and check the real cost and limits of a court claim.
Updated and fact-checked 26 September 2026 · England and Wales court process
Start here
Pick the action that matches the invoice today
Do not jump straight to court. Confirm the amount and any dispute first, then escalate one documented step at a time.
The calculator is free. Experi's letter, recovery-history and supporting-file tools are Pro features. Experi does not post letters, file claims or take legal action for you.
Quick answer: what is the cheapest recovery route?
Start by checking the legal customer name, balance, due date and any dispute. Then send your own dated reminder and final deadline. For an eligible business-to-business debt, you may be able to claim statutory interest plus fixed recovery compensation without paying a court filing fee. A formal letter normally comes before paying an agency, solicitor or court fee.
Choose your next step
The due date just passed
Send a calm factual reminder and confirm the invoice reached the right person.
Use the overdue email templatesThe client is ignoring reminders
Set a final deadline, preserve the correspondence and check whether B2B charges apply.
Open the chasing letter packThe client disputes the work or amount
Pause automatic escalation, ask for the exact disputed points and consider mediation or advice.
Read the official mediation guidance (opens in a new tab)A final deadline has passed
Check the applicable pre-action process, then compare an agency, legal advice and a court claim.
Prepare the formal next stepCompare debt recovery options, cost and fit
Costs below are starting points, not quotes. Compare the likely net recovery and time as well as the headline fee.
DIY reminders
No external fee- Best fit
- A first overdue invoice with no genuine dispute
- Check first
- Keep dated copies and stop automated reminders if they would conflict with an agreed plan or dispute.
Interest and compensation
No filing fee- Best fit
- An eligible late business-to-business payment
- Check first
- A contractual remedy or the type of debt can change eligibility. Check before claiming.
Letter Before Action
Postage or optional advice- Best fit
- A documented debt after reminders have failed
- Check first
- The correct pre-action process depends on the parties and claim. A 30-day reply period is not universal.
Small Business Commissioner
Free- Best fit
- A small UK supplier complaining about a larger private-sector customer
- Check first
- The Commissioner says its investigation scheme covers disputes between small and large businesses. Check the current scope first.
Mediation
Free in the court scheme for qualifying claims- Best fit
- A disputed claim where agreement is still possible
- Check first
- For a defended claim of £10,000 or less, court-organised mediation is free and attendance is generally required. Independent mediation can have a fee.
Debt collection agency
Provider-specific fee or commission- Best fit
- A documented debt you do not want to chase yourself
- Check first
- Compare minimum debt, exclusions, commission, court work and what happens if nothing is recovered. An agency does not guarantee payment.
Court claim
£35–£455 up to £10,000- Best fit
- A claim with sound evidence after the relevant pre-action steps
- Check first
- Later hearing or enforcement fees can apply. You may be able to claim fees back if you win, but judgment and collection are separate stages.
Solicitor
Quote required- Best fit
- A higher-value, complex, cross-border or strongly disputed debt
- Check first
- Ask for the fee basis, likely recoverable costs and decision points in writing before instructing anyone.
Recover an unpaid invoice in five steps
Check the debt and the debtor
Confirm the invoice was sent to the correct legal entity, the due date has passed, no payment or credit is missing, and the customer has not raised a genuine dispute.
Send a dated reminder
Start with a short factual message showing the invoice number, balance, original due date and a clear new date for payment. Keep the message and any reply.
Check eligible B2B charges
An eligible late commercial payment may support statutory interest and fixed recovery compensation. Check the contract and the official rules before adding either amount.
Send the correct formal letter
State the debt, evidence, deadline and intended next step. If a business is claiming from an individual or sole trader, check whether the Debt Claims Protocol and its prescribed enclosures apply.
Choose outside help or a court claim
Compare likely recovery with commission, legal costs, court fees, time and enforceability. A judgment is not the same as receiving payment and may still need enforcement.
The 30-day rule is not universal
The Debt Claims Protocol applies where a business, including a sole trader or public body, claims payment from an individual, including a sole trader. It requires a Letter of Claim with specified information and forms, and gives the debtor 30 days to reply. Other claims can follow different pre-action requirements.
Read the official Debt Claims Protocol (opens in a new tab)Before choosing a debt collection agency
Agency pricing and scope vary. Treat “no collection, no fee” as the start of the questions, not the whole agreement.
- Minimum debt and debtor-location rules
- Commission, VAT and any setup or closure fee
- Whether disputed debts are excluded
- What contact methods and reporting you will receive
- Whether court action is included or separately priced
- What happens if the debtor pays you directly
- How complaints and data handling are managed
- Whether you retain control over settlement offers
Court claim: cost, mediation and collection
In England and Wales, the current issue fee is £35 for a claim up to £300 and rises to £455 for a claim from £5,000.01 to £10,000. Claims above £10,000 and up to £200,000 cost 5% of the claim to issue. The online service calculates the fee; help with fees may be available.
If a claim of £10,000 or less is disputed, GOV.UK says the court will arrange free mediation and the parties will generally have to attend. If the debtor does not respond, you must request judgment; it is not automatic. If the debtor still does not pay after judgment, enforcement is a separate step with its own choices and possible fees.
When to pause, settle or write off the debt
Compare the likely net recovery with the debtor's ability to pay, the evidence, commission, fees and your time. Check the insolvency position before spending more, and consider a documented settlement where it produces a better result than uncertain enforcement.
In England and Wales, a simple-contract claim is generally subject to a six-year limitation period from when the cause of action accrued. The facts and jurisdiction matter. If you are VAT registered, VAT bad debt relief also has conditions: HMRC says the debt must have remained unpaid for at least six months after the later of the due date and supply date, and it must be written off in the required VAT records.
Keep the recovery record together
Prepare the letter; keep control of the decision
On Pro, Experi lets you edit and approve chasing letters, download a PDF or print it, record sending manually and keep private supporting files with the invoice. Eligible B2B interest is an estimate. The evidence export is a text summary, not a complete court bundle.
No card required. Experi is not a postal service, debt collector or law firm and does not file claims.
Unpaid invoice recovery questions
What is the cheapest way for a freelancer to recover an unpaid invoice?
The cheapest sensible route usually starts with checking the invoice and sending your own dated reminders. For an eligible B2B debt, statutory interest and fixed compensation do not require a court filing. Escalate only when the lower-cost step has failed and compare the likely recovery with any commission, advice or court fee.
Should I use a debt collection agency for an unpaid invoice?
An agency can make sense when the debt is documented, the debtor is still traceable and you do not want to run the chase yourself. Ask about minimum debt, commission, exclusions, court action, complaints and charges if nothing is recovered. An agency cannot guarantee payment.
Can mediation help recover a freelance invoice?
Yes, especially where the customer disputes part of the work or amount but a negotiated settlement remains possible. If a defended court claim is for £10,000 or less, GOV.UK says court-organised mediation is free and the parties will generally have to attend.
How much does a court claim for an unpaid invoice cost?
Current issue fees in England and Wales run from £35 for claims up to £300 to £455 for claims from £5,000.01 to £10,000. Claims above £10,000 and up to £200,000 have a fee of 5% of the claim. Further hearing or enforcement fees can apply.
How long can I wait before claiming an unpaid invoice?
In England and Wales, section 5 of the Limitation Act 1980 generally gives six years for an action founded on a simple contract, measured from when the cause of action accrued. The facts and jurisdiction matter, so do not treat an old debt as automatically recoverable or automatically written off without advice.