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Letter Before Action (LBA): Free Template for Unpaid Invoices (UK 2025)

Updated May 2025 · 7 min read

A Letter Before Action (LBA) is a formal letter you send to a client before taking them to court for non-payment. It's a legal requirement in most UK court processes — and it often triggers payment without ever needing to go to court.

✅ Key fact

Sending an LBA before court action is required by the Pre-Action Protocol for Debt Claims (effective since October 2017). Courts can penalise claimants who skip this step — even if you win your case.

What Is a Letter Before Action?

A Letter Before Action is a formal written notice to a debtor that you intend to begin legal proceedings unless payment is made within a specified period (usually 14 days).

It serves three purposes:

⚖️
Legal requirement: Required by the Pre-Action Protocol for Debt Claims before issuing proceedings in the UK courts.
💰
Often triggers immediate payment: The seriousness of a formal legal letter gets attention that email chains don't. Most debtors settle at this stage.
📋
Documents your good faith: Shows the court you attempted resolution before litigating, which courts look favourably upon.

When to Send a Letter Before Action

Send an LBA after you've exhausted normal invoice chasing — typically:

StageTimingAction
1st reminderDay +3Friendly email
2nd reminderDay +7Follow-up email + phone
3rd reminderDay +14Formal overdue notice
Letter Before ActionDay +21–30⬅ This is where you are now
Court filingDay +35–45Only if LBA is ignored

Don't send an LBA as your first message — it escalates too quickly and makes good-faith clients defensive. Use it after at least 2–3 unsuccessful reminders.

What to Include: 7 Required Elements

Under the Pre-Action Protocol for Debt Claims, your LBA must include:

1
Your full name and address

As the creditor/claimant

2
The debtor's full name and address

Use the registered business address if available

3
The amount owed

Broken down: principal + statutory interest to date + debt recovery costs

4
The basis of the debt

Brief description of the work done / services provided

5
Payment deadline

Typically 14 days from the date of the letter

6
Payment instructions

Your bank account details for transfer

7
Statement of intent

Clear statement that court proceedings will follow if payment is not received by the deadline

Free Letter Before Action Template

Copy, fill in the [brackets], and send by email and recorded post.

[YOUR FULL NAME / BUSINESS NAME]

[YOUR ADDRESS]

[YOUR EMAIL]

[DATE]

[CLIENT FULL NAME / COMPANY NAME]

[CLIENT REGISTERED ADDRESS]

LETTER BEFORE ACTION

Re: Unpaid Invoice #[INV-001] — £[AMOUNT] — Due [DUE DATE]

Dear [Name / Company Name],

I write regarding Invoice #[INV-001] dated [INVOICE DATE] for £[AMOUNT] in respect of [brief description of services, e.g., "website design services provided in April 2025"]. Payment was due on [DUE DATE] and remains outstanding despite previous requests for payment dated [DATE OF PREVIOUS EMAILS].

The total amount now owed is:

Principal amount: £[AMOUNT]

Statutory interest ([DAYS] days × 12.25% p.a.): £[INTEREST]

Debt recovery cost (Late Payment Act 1998): £[40/70/100]

Total outstanding: £[TOTAL]

Pursuant to the Pre-Action Protocol for Debt Claims, I am giving you 14 days from the date of this letter to settle the full outstanding amount.

Please arrange payment of £[TOTAL] by [DATE + 14 DAYS] to the following account:

Account name: [YOUR NAME]

Sort code: [XX-XX-XX]

Account number: [XXXXXXXX]

Reference: INV-[NUMBER]

If payment is not received by [DATE + 14 DAYS], I intend to commence proceedings in the County Court without further notice. This may result in a County Court Judgment (CCJ) being registered against you, which could affect your credit rating and ability to obtain credit.

If you dispute this debt or believe there is an issue with the invoice, please contact me in writing within 14 days at [YOUR EMAIL]. I am open to discussion to resolve this matter without legal action.

Yours sincerely,

[YOUR FULL NAME]
[YOUR BUSINESS NAME]

Note: This template is for guidance only and does not constitute legal advice. For complex disputes or large amounts, consider consulting a solicitor.

What Happens After You Send It

They pay in full

~60%

Close the matter, confirm receipt, update your records. Consider whether to continue working with this client.

They respond with a partial payment or payment plan

~20%

You can accept or reject. If accepting, get the plan in writing. Issue a new invoice for the remaining amount with a short due date.

They dispute the debt

~10%

Respond in writing with evidence (contract, deliverables, approvals). You have 30 days to exchange documents under the protocol before filing.

They ignore it completely

~10%

File a claim at Money Claim Online (MCOL) for debts up to £100,000. Costs £35–£455. The debtor has 14 days to respond or you get a default judgment.

FAQ

Do I need a solicitor to send a Letter Before Action?

No. You can write and send an LBA yourself. For straightforward unpaid invoice cases, a solicitor is rarely necessary until you actually file in court — and even then, Small Claims Court is designed for self-representation.

Should I send it by email or post?

Both. Send it by email to create a timestamped record, and by recorded delivery post to the registered business address. This proves the letter was delivered and received.

What if the company has gone into administration?

You become a creditor in the insolvency proceedings. Contact the appointed administrator and register your claim. Recovery is not guaranteed, but you have a legal right to participate in the process.

Can I send an LBA to a sole trader or individual?

Yes. The process is the same. For personal debts (not B2B), the Pre-Action Protocol still applies and you must give the debtor 30 days (not 14) to respond.

Does sending an LBA affect my relationship with the client?

Probably — but if you're at this stage, the relationship is likely already strained. Many freelancers report that formal action actually restores respect: clients realise you take payment seriously and treat you more professionally in future.

Get paid before you need an LBA

Chaser automatically sends payment reminders at Days −3, +3, +7, and +14 after the due date. Most clients pay in stages 1–2. You rarely need an LBA.

Automate your invoice chasing →

Free plan · 3 invoices · No credit card