Customer Won't Pay? Here's What to Do as a UK Tradesperson (Step by Step)

When a customer won't pay, follow a clear escalation ladder: a same-day phone call, then a written reminder, then a formal Letter Before Action giving 7–14 days, and finally a County Court money claim online. Most disputes settle long before court — and the ones that don't are far easier to win when you've got a written scope and a deposit behind you.

I've watched this situation drain tradespeople around Torbay of more energy than the actual work ever did. The good news is that non-payment follows a predictable path, and at every stage there's a calm, correct next step. The trick is not skipping straight to anger — follow the ladder and most people pay before it gets serious.

The escalation sequence, step by step

• Step 1 — same-day phone call. A friendly, direct "just chasing the invoice from last week" call clears most cases. Many non-payments are forgetfulness or a misplaced invoice, not malice. Keep it warm.
• Step 2 — written reminder. If the call doesn't land it, follow up in writing (email or message) restating the amount, the work done and a clear due date. Now there's a paper trail.
• Step 3 — Letter Before Action. Still nothing? Send a formal Letter Before Action giving them a firm deadline — usually 7 to 14 days — to pay before you start a court claim. This alone resolves a huge share of disputes; people take it seriously.
• Step 4 — County Court claim. If the deadline passes, you file online via Money Claim Online (MCOL). For a debt under £300 the issue fee is around £35. A successful claim can result in a CCJ — a County Court Judgment — which stays on their credit record for six years.

What to put in a Letter Before Action

This isn't a solicitor's letter and it doesn't need legal jargon. It needs to be clear, factual and firm. Include:

• Who you are and what work you did, with dates.
• The exact amount outstanding and the original invoice date.
• A clear statement that this is a Letter Before Action / letter before claim.
• A firm deadline (7–14 days) to pay in full.
• A plain statement that if they don't pay, you'll start a County Court claim without further notice, and may add interest and costs.

Keep a copy and send it so you can prove delivery. The seriousness of the format does a lot of the work for you.

How Money Claim Online actually works

MCOL lets you start a small claim entirely online — no solicitor needed for straightforward debts. You enter the defendant's details and the amount, pay the issue fee (which scales with the claim size), and the court serves the claim. If they ignore it, you can request judgment by default and you'll typically win, leaving them with a CCJ. If they respond and dispute it, the case may go to a short hearing where you present your evidence — which is exactly why your paperwork matters so much.

Prevention: what to have in place before the job

The best non-payment fight is the one you never have. Before you lift a tool:

• A written scope — what you're doing, for how much. Read our guide on whether you need a contract for every job for exactly what to include.
• A deposit up front — see how to take a deposit before a job. A customer who's already paid something is far more committed to paying the rest.
• A booking confirmation the customer has agreed to in writing, even if it's just a message.
• Invoices that go out fast — see how to get invoices paid on time. The longer an invoice sits, the harder it is to collect.

Types of non-payer and early warning signs

• The forgetful. Genuinely lost the invoice. One call fixes it. Most people are this.
• The strugglers. Want to pay but can't right now. A written payment plan often beats a court fight.
• The disputers. Claiming the work's wrong — sometimes fair, sometimes a stalling tactic. Your written scope decides who's right.
• The chancers. Never intended to pay. Warning signs: vague before the job, pushy on price, reluctant to agree anything in writing, no deposit. These are why deposits exist.

When to fold

Not every fight is worth it. If chasing a small debt costs you more in time, stress and fees than you'd recover, a partial settlement to close it off can be the smart business move. Reserve the full court route for amounts worth the effort and for chancers you want on record.

Can you take the materials back?

If your written terms include a retention-of-title clause, you have a stronger position to recover unfixed, unused materials. But once goods are installed and become part of the property, recovering them is legally fraught and usually not worth it. The real protection is the deposit and the paperwork.

Frequently asked questions

What's the small claims limit?
The small claims track in England and Wales generally handles claims up to £10,000, which covers the vast majority of trade disputes.

Can I charge interest on a late payment?
For commercial customers, the Late Payment of Commercial Debts (Interest) Act 1998 lets you charge statutory interest (8% above the Bank of England base rate) plus a fixed recovery charge. For consumer customers, you can charge interest if your terms clearly state it.

Do I need a solicitor?
For a straightforward unpaid invoice on the small claims track, no — MCOL is designed to be used without one, and solicitor costs aren't generally recoverable on small claims anyway.

What if they dispute the quality of the work?
Then your written scope and any photos become everything. Under the Consumer Rights Act 2015 your work must be done with reasonable care and skill — if you've met that and can show it, a quality dispute is weak.

How long do I have to chase a debt?
In England and Wales you generally have six years from when the debt became due to start a claim, under the Limitation Act 1980. Don't leave it that long — the trail goes cold and the customer disappears.

Key takeaways

• Work the ladder. Call, written reminder, Letter Before Action, then MCOL — most people pay before the last rung.
• The Letter Before Action does the heavy lifting. A clear, firm deadline letter resolves a huge share of disputes.
• A CCJ has teeth. Six years on their credit file is a powerful, lawful lever — and you start the claim online for around £35 on small debts.
• Prevention beats recovery. Written scope, a deposit and a fast invoice mean you rarely reach court at all.
• Know your non-payer. Forgetful, struggling, disputing or chancer — each needs a different response.
• Know when to fold. A partial settlement that closes the file can beat a costly fight over a small sum.

Almost every non-payment I see traces back to a missing deposit or a vague handshake deal. OptiTech Automation builds the protection in — deposits taken at booking, a written scope the customer agrees to, and invoices that chase themselves so debts never get old. See our pricing, get in touch, or start onboarding to stop chasing money for good.