How to Handle a Customer Who Refuses to Pay

It happens. You do the work, you invoice correctly, and then nothing. They go quiet, come up with reasons the job isn't right, dispute the price, or just flatly stop responding. It's one of the most frustrating things about working for yourself — and it's more common in construction and the trades than it should be.

Here's how to handle it, step by step.

Before you do anything — check your paperwork

Before you chase, make sure your position is solid:

Did you have a written quote or contract that the customer agreed to? Does your invoice include everything HMRC requires? Does your invoice match the agreed price? Did you send the invoice to the right person/address? Are your payment terms clearly stated?

If the answer to any of these is no, you're not necessarily without options — but your position is weaker than it should be. Courts and alternative dispute resolution processes look at documentation first.

Step one — make contact

Before escalating, try to find out what's actually going on. Call first (not just email — calls are harder to ignore). Keep it neutral:

"Hi [Name], I'm just following up on invoice [number] for £[amount] that's now [X] days overdue. I just wanted to check if there's an issue with anything or if you need the bank details again."

You might find out there's a genuine query about the work, a cash flow problem on their end, or a mistake in the invoice. Resolve straightforward issues at this stage — don't escalate before you need to.

Step two — formal written demand

If calls and emails go unanswered, send a formal written demand. Email with read receipt, and a hard copy by recorded delivery to their address.

Include: The invoice number and amount The original due date A clear statement that the amount is overdue A final payment deadline (7-14 days from the date of the letter) A statement that failure to pay will result in further action

Mention the Late Payment of Commercial Debts (Interest) Act if it's a business customer — you're entitled to 8% above base rate interest on the overdue amount, plus fixed compensation.

Step three — mediation or small claims

For amounts under £10,000, small claims court is the right route. It's designed to be accessible without a solicitor, and fees are based on the claim amount — £35 for claims up to £300, scaling to £455 for claims between £5,000 and £10,000.

You can make a claim online at gov.uk/make-court-claim-for-money. In many cases, the debtor pays up when they receive the court papers — the threat of a CCJ (County Court Judgment) on their credit record is often enough.

For business customers, you can also consider statutory demands and winding-up petitions for larger amounts — but that's solicitor territory.

Disputes about the quality of work

The most common reason a customer refuses to pay isn't that they can't — it's that they're unhappy with the work and using non-payment as leverage.

If this is the case:

Get the specific complaint in writing Assess whether it's legitimate If it is, offer to put it right — a reasonable customer will accept this If it isn't, respond in writing setting out why the work meets the agreed specification Document everything — photos, before and after, the original scope of work

Going to small claims court for a disputed quality claim is more complex than a straightforward non-payment case. The judge will want to see what was agreed, what was delivered, and what evidence there is.

When to walk away Sometimes the cost of pursuing a debt — in time, stress, and legal fees — isn't worth what's owed. For small amounts with a difficult customer who has made it clear they intend to fight, it may be cheaper to write it off and spend the time earning from customers who pay.

That's a business decision, not a defeat. Make it consciously rather than just letting it drift.

How to prevent this happening again Deposits before starting work — at least enough to cover your materials Clear written quotes with a scope of works Staged payments on larger jobs Invoices with specific payment terms and due dates A brief inspection with the customer before you leave site on the final day — verbal sign-off isn't nothing

Dayrates gives you a complete paper trail — dated quotes, invoices with payment terms, automated reminders, and a record of everything sent. That paper trail is what makes the difference if it ever goes to a dispute.

The lads who rarely get burned aren't lucky — they've just got better systems.