Free Letter Before Action Generator UK
Create a professional UK pre-legal payment demand letter in minutes
Built for businesses, accountants, finance teams and credit controllers recovering unpaid invoices
Your Business Details
The creditor — the party owed money
8 November 2026
Letter Before Action — Formal Demand for Payment
We write to you in relation to the outstanding debt owed by your organisation to our company. Despite the payment terms agreed and previous communications, the following invoice remains unpaid:
Invoice No Date Due Date Amount Unpaid ——————————————————————————————————————————————————————————————————
Total Principal Outstanding: £0.00 Fixed Compensation: £40.00
Total Amount Demanded: £40.00
The statutory interest claimed is calculated in accordance with the Late Payment of Commercial Debts (Interest) Act 1998, at a rate of 11.75% per annum (Bank of England base rate of 3.75% plus the statutory 8% uplift).
Fixed compensation is claimed in accordance with the Late Payment of Commercial Debts (Interest) Act 1998.
We formally demand payment of the full amount of £40.00 within 14 days of the date of this letter, by no later than 22 November 2026.
If payment is not received by the deadline stated above, we may have no alternative but to consider further action to recover this debt. This may include formal legal proceedings, which could result in additional costs being incurred.
This letter constitutes a formal pre-action notification in accordance with the Practice Direction on Pre-Action Conduct and Protocols. We strongly urge you to treat this matter with the seriousness it warrants and to respond promptly.
Please respond to this letter in writing to the address above within 14 days to confirm payment or to discuss this matter.
Yours faithfully,
________________________
Date: 8 November 2026
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What to Do After Sending Your Letter Before Action
How to Use This Generator
Enter your business details as the creditor
Add the debtor's name and address
Enter one or more unpaid invoices with amounts and dates
Choose your payment deadline and toggle statutory interest
Select your preferred tone and review supporting evidence
Preview your letter, then download or copy it
What Is a Letter Before Action?
A Letter Before Action (LBA) is a formal written demand for payment, typically sent as the final step before commencing legal proceedings. In the UK, it forms a critical part of the pre-action protocol and demonstrates to a court that you attempted to resolve the matter without litigation.
Businesses use LBAs when standard chasing — reminders, phone calls, emails — has failed to produce payment. The letter formalises the debt, sets a clear deadline, and warns the debtor of the consequences of continued non-payment.
When Should You Send a Letter Before Action?
You should consider sending a Letter Before Action when reminders and standard chasing have been exhausted, the debt is clear and undisputed, and you need to formalise your position before considering legal escalation.
LBAs are commonly sent after 30–90 days of non-payment, depending on the relationship and the value of the debt. They signal seriousness without necessarily burning bridges — many debtors pay once they receive a formal demand.
What Should a UK Letter Before Action Include?
A properly drafted UK LBA should include:
- Full details of the creditor and debtor
- A clear description of the debt and supporting invoices
- The total amount demanded, including any statutory interest
- A specific payment deadline (typically 7–30 days)
- Payment instructions
- A statement of consequences if payment is not made
- Reference to the Pre-Action Protocol where appropriate
Can You Add Statutory Interest?
Under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses can claim statutory interest on overdue B2B invoices at a rate of 8% above the Bank of England base rate (currently 3.75%, making the total rate 11.75% p.a.).
Additionally, fixed compensation of £40 (debts under £1,000), £70 (£1,000–£9,999) or £100 (£10,000+) can be claimed per invoice. Use our Late Payment Interest Calculator to calculate the exact amounts.
What Happens After a Letter Before Action?
After sending an LBA, several outcomes are possible:
- Payment in full — the matter is resolved
- Negotiation — the debtor may propose a payment plan or settlement
- No response — you may proceed with formal legal proceedings
- Dispute — the debtor may challenge the claim, which should be addressed before escalating
AutoSettle's Recovery Engine handles all of these outcomes automatically — from offering payment plans through the debtor portal to escalating through pre-legal stages.
Disclaimer: This tool is provided for guidance only and does not constitute legal, financial or accounting advice. AutoSettle is not a law firm. You should seek independent legal advice if you are unsure about your rights or the appropriateness of sending a formal demand. This tool is designed for UK commercial debt recovery use.
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