Guide
Letter before action: what to include, and what to send with it
Written for UK sole traders and small businesses. General information, not legal advice — for anything contested or high value, take advice from a solicitor.
The short answer
A letter before action (also called a letter before claim) is the formal, final written demand you send before starting a court claim. Send it once your normal reminders have run out — usually around 30 days overdue. Set out who owes what and why, give a clear deadline, and enclose the evidence: the invoice, what was agreed, your terms, and the full trail of earlier chasers. Give a consumer 30 days to respond; 14 days is the usual practice between businesses.
What the letter must contain
The letter has one job: to make it obvious, to them and later to a judge, exactly what is owed, why, and what you asked for. Cover all seven points below.
- 1
Who is writing, and who to
Your business name and address, and the debtor's full legal name and address. For a limited company, use the registered name and registered office — not the trading name.
- 2
What the debt is and how it arose
A short, factual description of the work or goods supplied, when it was agreed, and when it was completed or delivered.
- 3
The invoice details and the amount
Invoice number or numbers, the date issued, the date due, and the total now outstanding.
- 4
Interest and compensation claimed
If you're claiming statutory interest and the fixed recovery cost on a commercial debt, say so and show the figure. Keep it separate from the invoice total.
- 5
How and by when to pay
Bank details and a payment reference, plus a clear deadline date rather than 'within 14 days'.
- 6
What happens if they don't
State plainly that you may issue a claim in the county court (sheriff court in Scotland) and seek interest, costs and court fees. No threats beyond what you would actually do.
- 7
How to respond or dispute
Invite them to reply in writing with details of any dispute, and to contact you if they want to agree a payment plan. Courts expect you to have given that chance.
What to send with it
The letter is the claim; the enclosures are the proof. Courts expect both sides to have shared their key documents before a claim is issued, and a well-evidenced letter settles far more often than a bare demand. Send everything you would rely on if it went to court.
A copy of the invoice, and a statement of account if there are several
Removes the 'I never received it' answer and shows the exact sum claimed.
The quote, estimate, order or signed job sheet
Evidences what was agreed and at what price — the contract itself.
Your terms and conditions, especially payment terms and any interest clause
If you're claiming contractual interest or charges, you need to show the term they agreed to.
The full chain of previous emails, texts or messages chasing payment
Shows you gave fair warning and behaved reasonably. This is the part people most often can't produce.
Proof the work was done or the goods delivered
Photos, sign-offs, delivery notes or completion certificates answer a quality dispute before it starts.
A schedule showing how interest and compensation were calculated
A figure with no working behind it invites an argument; a dated calculation doesn't.
For a consumer debt: a reply form, an information sheet and a financial statement form
The Pre-Action Protocol for Debt Claims requires these when the debtor is an individual.
Before you send — checklist
- ·Copy of the invoice (and statement of account)
- ·Quote, estimate, order or signed job sheet
- ·Your terms and conditions
- ·All previous emails, texts and reminders
- ·Proof the work was done or goods delivered
- ·Interest and compensation calculation
- ·Consumer only: reply form, information sheet, financial statement form
How long to give them
If the debtor is an individual — a consumer, or a sole trader in their own name — the Pre-Action Protocol for Debt Claims applies. It expects 30 days for a response, and the letter to be sent with a reply form, an information sheet and a financial statement form. Skipping it can be penalised in costs later.
Between businesses there's no specific debt protocol, but the general Practice Direction on Pre-Action Conduct still requires a reasonable time to reply. 14 days is the usual practice for a straightforward invoice.
Send it by email and by post, and keep proof of both. Use the deadline as a date, not a count of days.
How the letter is laid out
A plain structure is fine — no legal language required. This is the shape most letters take:
Your name, business name, address, email, phone
Their name and address · Date · Sent by email and post
LETTER BEFORE ACTION
1. The work: what you supplied, when it was agreed and when it was completed.
2. The debt: invoice number, date issued, date due, amount.
3. What you've already done: the dates of your earlier reminders.
4. What you're claiming: the invoice total, plus interest and recovery costs if applicable, shown as a single figure.
5. How to pay, and the deadline date.
6. What happens if the deadline passes, and an invitation to reply in writing if they dispute the debt or need a payment plan.
7. A list of the documents enclosed.
Yours sincerely, your name and position
Keep a dated copy of exactly what you sent, including the enclosures.
What happens after you send it
They pay
Most do at this stage. Confirm receipt in writing and close the matter off — no last word needed.
They dispute it
Reply to the substance, in writing, and keep it factual. Consider whether a part payment or a payment plan settles it faster and cheaper than a claim.
They ask for time
A written payment plan with dates is usually better than a court claim. Put it in writing and hold them to the dates.
They go quiet
Once the deadline passes you can issue a claim online through Money Claim Online, or take advice from a solicitor if the sum is large or the facts are contested.
Keep the trail, before you need it
The hardest enclosure to produce after the fact is the one you can't recreate: the full record of every reminder you sent and every reply you got. TactPay chases for you — gentle first, firm when needed — and keeps that correspondence in one place against each invoice.
Earlier in the process? Read how to chase unpaid invoices — what to send, when, and how to work out late payment interest.
This guide is general information about the law in the UK and is not legal advice. Procedure differs in Scotland and Northern Ireland. Check the linked official sources, and take advice from a solicitor if the debt is disputed or substantial.