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The Late Payment of Commercial Debts (Interest) Act 1998
The Late Payment of Commercial Debts (Interest) Act 1998 is the primary legislation protecting UK freelancers against non-payment. It applies to commercial transactions — contracts for the supply of goods or services between businesses — which includes all freelance journalism commissions. You do not need to be registered as a company; sole traders are covered.
Under the Act, if a payment is not made by the agreed due date (or, where no date is agreed, within 30 days of the later of delivery of the invoice or delivery of the work), statutory interest begins to accrue automatically at 8% per annum above the Bank of England base rate. You are also entitled to a fixed sum for the cost of recovering the debt, and to reasonable debt recovery costs beyond that fixed sum.
Importantly, a publisher cannot contract out of the Act's provisions by including a clause that purports to remove or limit your right to statutory interest — any such clause is void under the Act.
The escalation path: from first chase to court
Step 1: Polite reminder (day 31–45)
Send a courteous email referencing the original invoice number, the work delivered, and the agreed payment date. State the current outstanding balance. Allow five business days for payment.
Step 2: Formal payment demand (day 46–60)
If no payment, send a formal letter (email with read receipt) explicitly invoking the Late Payment of Commercial Debts (Interest) Act 1998. State the principal amount owed, the statutory interest accruing from the due date at the current rate, and the fixed compensation sum. Give seven days to pay.
Step 3: Letter before action (day 61–75)
This is a formal letter before court proceedings, sometimes called a Letter Before Claim. State that if payment (including interest and compensation) is not received within 14 days, you will issue proceedings in the County Court without further notice. Keep the tone factual and professional. The NUJ debt-chasing guide has template language for this letter.
Step 4: Money Claim Online (MCOL)
File your claim at moneyclaims.service.gov.uk. You will need: the defendant's full legal name and registered address, the invoice amount, accrued interest, fixed compensation sum, and court fee. Once filed, the defendant has 14 days to acknowledge service and a further 14 days to file a defence. If they do not respond, apply for default judgment.
Step 5: Enforcement of judgment
A County Court Judgment (CCJ) is not automatic payment — you may need to enforce it. Options include: a warrant of control (bailiffs), a third-party debt order (freezing a bank account), or an attachment of earnings order for company directors. Enforcement proceedings have additional fees, which are also recoverable.
What you can claim under the 1998 Act
- 1The principal invoice amount — the agreed fee for the work delivered.
- 2Statutory interest at 8% per annum above Bank of England base rate, calculated from the day after the payment due date.
- 3Fixed compensation: £40 for debts up to £999.99; £70 for debts of £1,000 to £9,999.99; £100 for debts of £10,000 or more.
- 4Reasonable costs of a debt collection agency, if used, beyond the fixed compensation sum.
- 5Court fees paid to file the MCOL claim.
- 6Any reasonable legal costs, if the claim is defended and you have legal representation (note: costs recovery in small claims is limited).
Before you go to court: practical considerations
- Ensure you have documentary evidence of the commission and the work delivered: emails, a signed contract or commission letter, and proof of delivery (sent email with attachment, acceptance email from editor).
- Check that the invoice was sent to the correct address and contact — a common defence is that an invoice was never received.
- Confirm the correct legal entity: if the publisher is part of a group, you need to name the correct legal entity (the company that commissioned you) in any court claim.
- Consider whether the relationship is worth preserving — court proceedings may end a working relationship, even if you win.
- For amounts under £10,000 the small claims track applies — legal costs are not normally recoverable even if you win, so issuing proceedings without a solicitor is usually the right approach.
- NUJ members can access the NUJ legal service for guidance on debt recovery before and after issuing proceedings.
Late payment calculator
Calculate the statutory interest and fixed compensation you are entitled to under the 1998 Act, based on your invoice amount and due date.
Common mistakes when chasing late payment
- Waiting too long before escalating — the longer you wait, the easier it is for a publisher to argue the debt is disputed or the invoice was never received.
- Not invoking the 1998 Act explicitly in correspondence — simply asking for payment does not start the statutory interest clock in a way that puts the debtor on notice.
- Accepting a part-payment without agreeing in writing what it covers — a part-payment can complicate a subsequent claim for the balance.
- Not keeping copies of all correspondence — a court claim requires you to exhibit the invoices, commission emails, and all chasing correspondence.
- Failing to send a formal letter before action before issuing proceedings — courts expect parties to have attempted resolution before litigation.