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What the Late Payment Act actually gives you
The Late Payment of Commercial Debts (Interest) Act 1998 (as amended in 2002 and 2013) applies to every business-to-business contract for the supply of goods or services. As a freelance journalist, every article, broadcast package, or other media service you supply to a publisher, broadcaster, or agency is covered. You do not need to have negotiated these rights in advance — they are implied into your contract by statute.
The Act gives you three automatic entitlements when an invoice is paid late: statutory interest at 8 percentage points above the Bank of England base rate; a fixed compensation fee (£40 for debts under £1,000, £70 for debts from £1,000 to £9,999, £100 for £10,000+); and a right to recover reasonable debt-recovery costs above the fixed fee where appropriate.
Where no payment term is agreed in writing, the Act implies a 30-day payment period running from delivery of the invoice or acceptance of the work, whichever is later. If you agree a longer payment term (e.g. 60 days), interest only starts running after that term expires — which is why 30-day payment terms protect you and 60-day terms do not.
When late payment becomes a serious problem
- 1Invoice is 14+ days overdue with no communication from the client.
- 2You have delivered the work to the agreed brief and received a commissioning email as evidence of the contract.
- 3The publication has agreed a fee in writing (email is sufficient) but has not paid within the agreed or implied term.
- 4The client says the invoice is "in the system" but payment does not arrive after multiple follow-ups.
- 5The publication has been acquired, is in financial difficulty, or has changed editorial staff since your commission.
- 6You have more than one overdue invoice with the same client — a pattern suggesting systemic non-payment.
Red flags before you even invoice
- The client cannot give you a purchase order number or finance contact — a sign of disorganised payment systems.
- The commission was made verbally with no written confirmation — weakens your evidence if disputed.
- The publication is new, small, or self-funded with no track record of paying freelancers on time.
- The commissioning editor tells you "we pay when the piece runs" — this is not a legal payment term and protects only them.
- They push back on your standard 30-day terms without offering a clear alternative — bad payers rarely want short terms.
- Online forums or freelancer communities (e.g. Journo Resources, Reddit r/freelance) carry complaints about this specific outlet.
Late payment escalation checklist
Day 1
Invoice sent
Send a correctly formatted invoice via email. Include invoice number, date, payment terms (30 days), your sort code/account number or PayPal, and full description of work. Keep the sent-item as evidence.
Day 30
Polite reminder
Email the finance contact (not just the commissioning editor) with the invoice PDF attached again. State the due date has passed. Confirm bank details. Keep the tone friendly — this may be a genuine admin error.
Day 45
Formal reminder
Send a firm email noting the invoice is now 15 days overdue. State that statutory interest is accruing under the Late Payment of Commercial Debts (Interest) Act 1998. Attach updated interest calculation.
Day 60
Letter before action
Send a formal letter before action (by email and ideally recorded post) setting out: original invoice amount, statutory interest accrued, compensation fee (£40/£70/£100), total now owed, and a 7-day deadline before court proceedings.
Day 67+
MCOL / Small Claims
File a claim using HMCTS Money Claim Online (MCOL) for debts under £10,000. Court fee is added to your claim. Most debtors pay on receipt of the claim form. If they do not, an undefended claim leads to a default judgment.
- I have kept a copy of every invoice with the email sent timestamp.
- I have the commissioning email (or letter) as evidence of the agreed fee.
- I have the email address for the finance / accounts payable department, not just the editor.
- I have calculated the statutory interest and compensation fee before sending my letter before action.
- My letter before action gives a clear 7-day payment deadline.
- I have checked MCOL (moneyclaim.gov.uk) and understand the applicable court fee for my debt amount.
- I have reported the non-payer to the NUJ or Journo Resources Bad Payers list if applicable.
Tools: calculate interest and generate chase letters
Our free tools do the arithmetic and draft the letters for you. The Late Payment Calculator computes statutory interest and compensation fees. The Late Payment Letter Generator produces polite, firm, and final-notice drafts with the correct statutory language already included.
Common mistakes when chasing late payment
- Waiting too long — chasing at 90 days rather than 30. Interest accrues from day one, but so does your stress.
- Emailing only the commissioning editor, not accounts payable — editorial teams often have no visibility of payment systems.
- Sending a letter before action without first calculating and quoting the interest and compensation fee — it loses authority.
- Threatening legal action without following through — one empty threat and debtors know you will not escalate.
- Accepting "we will pay next month" without getting it in writing — oral promises are hard to evidence in court.
- Forgetting the compensation fee — it is automatic and you are entitled to it; many freelancers simply do not know to claim it.
- Not keeping a paper trail — every email, every invoice, every phone call logged. Courts decide on evidence.
- Accepting a reduced settlement under pressure before understanding your full statutory entitlement.
Related guides
Client Red Flags
Warning signs before, during, and after a commission that predict payment problems.
Self-Assessment Tax
How to handle late income in your tax return and evidence for HMRC.
Editor Relationship Management
How being easy to work with can actually speed up payment.
UK Media Law Hub
Contracts, copyright, and legal issues for freelance journalists.
Related guides
Primary sources
- Late Payment of Commercial Debts (Interest) Act 1998— legislation.gov.uk
- Late Payment of Commercial Debts Regulations 2013— legislation.gov.uk
- HMCTS — Money Claim Online (MCOL)— HMCTS
- NUJ Freelance — rate and payment guidance— National Union of Journalists
- GOV.UK — make a court claim for money— GOV.UK
- Bank of England — current base rate— Bank of England
Frequently asked questions
When does the Late Payment of Commercial Debts (Interest) Act 1998 apply to freelance journalists?
The Act applies to business-to-business contracts for the supply of goods or services. A freelance journalist supplying articles or other media services to a publisher, broadcaster, or agency is operating under a B2B contract, so the Act applies. It does not apply if you are providing services to a private individual rather than a business. The Act gives you the right to claim statutory interest and compensation automatically — you do not need to have agreed it in advance.
What is the statutory interest rate and how is it calculated?
Statutory interest under the Act runs at 8 percentage points above the Bank of England base rate. If the base rate is 4.75%, interest accrues at 12.75% per year. The daily rate is the annual rate divided by 365. So on a £1,000 invoice at 12.75% annual, you accrue approximately £0.35 per day after the payment deadline passes. Our Late Payment Calculator (see tools section) does this arithmetic for you.
What is the compensation fee and do I have to claim it?
In addition to statutory interest, you are entitled to a fixed compensation fee per debt: £40 for debts under £1,000; £70 for debts from £1,000 to £9,999; and £100 for debts of £10,000 or more. You do not need to claim it separately — it is a statutory entitlement that arises automatically when payment is late. Include it in your letter before action and in any Small Claims Court claim.
What payment terms apply if I have no written contract?
Where there is no agreed payment term, the Act implies a 30-day payment period. The 30 days runs from the later of: the date you deliver the invoice; or the date the client accepts the goods or services (i.e. the article is delivered and acknowledged). So if you deliver an article and invoice on the same day and there is no contract, payment is due 30 days later. If the client disputes this, the Act still applies to impose that default term.
Can I take a media company to the Small Claims Court for an unpaid invoice?
Yes. Unpaid invoices under £10,000 can be pursued in the Small Claims track of the County Court via HMCTS Money Claim Online (MCOL). The process is straightforward: fill in the claim form online, pay the court fee (scaled to the debt — around £70-£455 for most freelance invoice amounts), and serve the claim on the debtor. Most professional debtors pay when they receive a court claim. If not, an undefended claim results in a default judgment, which you can then enforce.
Will chasing a late payment damage my relationship with the publication?
If the publication is a professional operation, a firm but courteous escalation following the standard ladder — polite reminder, formal reminder, letter before action — should not damage the relationship. Most editorial finance teams are separate from commissioning editors. However, if an editor becomes hostile after you chase payment correctly, that is itself a red flag about the client. Persistent late payers are not good long-term clients regardless.