How Long Can You Chase an Unpaid Invoice in the UK? Limitation Periods Explained

You've found an old unpaid invoice in your records. Maybe it's from last year. Maybe it's from three years ago. The question burning in your mind: is it too late to chase this?

The short answer: you almost certainly still can. Under UK law, you have 6 years to chase most unpaid invoices. Here's exactly how the limitation periods work and what affects them.

The 6-Year Rule

Under the Limitation Act 1980 (Section 5), you have 6 years from the date the debt became due to bring a court claim for an unpaid invoice. This applies to:

• Simple contracts (including verbal agreements)
• Written contracts without a deed
• Supply of goods and services
• Most freelance and B2B invoices

The clock starts ticking on the date payment was due — not the date you issued the invoice, and not the date you noticed it was unpaid. If your invoice had 30-day payment terms and was issued on 1 January 2024, the limitation period runs from 31 January 2024.

12 Years for Deeds

If your contract was executed as a deed (a formal legal document that is signed, witnessed, and delivered), the limitation period extends to 12 years. This is rare for normal invoices but common in construction contracts and some property-related work.

Can Anything Reset the Clock?

Yes. If the debtor acknowledges the debt or makes a part payment within the limitation period, the 6-year clock restarts from that date. Acknowledgment means any clear admission that the debt exists:

• An email saying "I know I owe you but I can't pay right now"
• A letter promising to pay by a certain date
• Any partial payment (even £1)
• A payment plan proposal

Important: Keep records of all communications. If the debtor acknowledged the debt 4 years after it was due, you now have a fresh 6 years from that acknowledgment — giving you up to 10 years from the original due date.

Can You Still Claim Statutory Interest on Old Invoices?

Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998, statutory interest accrues from the day after the due date at 8% + Bank of England base rate (currently 3.75%, making the total 11.75% per year). This interest continues to accrue for the full period the debt is outstanding.

On a £5,000 invoice that's 3 years overdue, statutory interest alone would be:

£5,000 × 11.75% × 3 = £1,762.50 in interest, plus £70 fixed compensation. Your total claim would be £6,832.50.

Use our free late payment interest calculator to work out exactly how much you're owed on any overdue invoice.

What Happens After 6 Years?

After the limitation period expires, the debt doesn't disappear — it becomes "statute-barred". This means:

• You cannot bring a court claim for the debt
• The debtor still owes you the money morally and technically
• You can still ask for payment — you just can't sue for it
• If the debtor voluntarily pays, the payment is valid and you can keep it

In practice, once a debt is statute-barred, your leverage evaporates. You can't threaten court action, which means you can't use a Letter Before Action effectively. This is why acting promptly matters.

Timeline: How Long Do You Actually Have?

Situation	Limitation Period
Standard invoice (simple contract)	6 years from due date
Contract executed as a deed	12 years from due date
Debtor acknowledged the debt	6 years from acknowledgment
Debtor made a part payment	6 years from the payment
Ongoing contract with multiple invoices	6 years per invoice individually

What Should You Do Right Now?

If you have unpaid invoices sitting in your records, here's the priority order:

1. Calculate What You're Owed

Use our free late payment interest calculator to see the total including statutory interest and compensation. You may be surprised how much interest has accrued — especially on older invoices.

2. Check the Dates

Work out when each invoice's payment was due. If you're within 6 years, you have a valid claim. If you're approaching the 6-year mark, act immediately — don't let it become statute-barred.

3. Start the Recovery Process

Send a chase email, then escalate to a Letter Before Action if needed. Our Full Recovery Pack (£9.99) includes 4 escalating email templates and a formal Letter Before Action — everything you need to chase the debt professionally.

4. Don't Wait

Every day you wait, you're leaving money on the table — literally. Statutory interest accumulates daily. A £3,000 invoice accrues £0.97 per day in interest at 11.75%. And every day closer to the 6-year mark is a day closer to losing your right to claim entirely.

Frequently Asked Questions

Does the limitation period apply to Scottish debts?

Scotland has different rules under the Prescription and Limitation (Scotland) Act 1973. The standard "prescriptive period" for debts is 5 years, not 6. This article covers England and Wales only.

Can I chase a company that's been dissolved?

You can apply to Companies House to restore the company to the register if you have a claim against it. This costs £100-£400 depending on the method. Once restored, the limitation period is paused for the period the company was dissolved.

What if the debtor has died?

You can claim against the deceased's estate within the normal limitation period. Contact the executor or administrator named in the grant of probate.

Does sending a Letter Before Action stop the clock?

No. Sending an LBA doesn't pause or extend the limitation period. Only filing a court claim or receiving an acknowledgment/payment from the debtor affects the timeline.

I have multiple unpaid invoices from the same client. Is the limitation period the same for all?

Each invoice has its own limitation period, running from its own due date. An invoice due in January 2021 and another due in June 2021 have different expiry dates. Check each one individually.

Don't Let Your Money Expire

The longer you leave an unpaid invoice, the harder it gets to recover — and after 6 years, you lose your legal right entirely. Start today. Calculate what you're owed and begin the recovery process before time runs out.