How to get paid on time as a tradesperson
The best protection against late payment is agreeing what you'll be paid and when, in writing, before you start, and splitting bigger jobs into stages so you're never far out of pocket. If a customer still won't pay, send a clear written reminder, then a formal letter before action, and if that doesn't work, consider mediation or a claim through the court.
Put it in writing before you start
- Give a quote (a fixed price) rather than an estimate where you can.
- Describe exactly what's included, and what isn't.
- Set out the stages, the amount for each and when each is due.
- Say how extra work will be agreed and priced.
- Say how you'd like to be paid and how quickly payment is due.
Use stage payments on bigger jobs
Stage payments aren't just for homeowners. If you're paid as each stage is finished, the most you can ever be owed is one stage, not the whole job. See our example stage payment schedules.
Don't fund the materials yourself
On jobs with expensive materials, agree how they're paid for before you order them: the customer buys them directly, pays the supplier, or pays you against the receipt. It stops you carrying the cost of the job.
Make paying easy
- Send each invoice as soon as the stage is done, while the work is fresh.
- Include photos of the finished stage, especially work that will be hidden later.
- Put your payment details and the due date clearly on every invoice.
Can you charge interest on late payment?
The statutory right to charge interest and debt recovery costs on late payment applies when your customer is another business (GOV.UK). It doesn't apply to homeowners. With a homeowner, you can only charge for late payment if your written agreement says so, so put any late-payment terms in the agreement up front.
What to do if a customer won't pay
- Talk to them first. Find out why. Often there's a concern about the work you can sort out quickly.
- Send a written reminder with the invoice, the amount and a date to pay by.
- Send a letter before action. Explain what's owed, why, and that you'll go to court if it isn't paid by a set date. Keep a copy.
- Try mediation. GOV.UK notes a mediation service can be quicker and cheaper than going to court.
- Make a court claim. In England and Wales you can claim online. Claims up to £10,000 are usually dealt with as small claims; in Scotland and Northern Ireland the limit is £5,000 (Which?).
Court fees in England and Wales
| Amount you're claiming | Court fee |
|---|---|
| Up to £300 | £35 |
| £300.01 to £500 | £50 |
| £500.01 to £1,000 | £70 |
| £1,000.01 to £1,500 | £80 |
| £1,500.01 to £3,000 | £115 |
| £3,000.01 to £5,000 | £205 |
| £5,000.01 to £10,000 | £455 |
Fees as listed by GOV.UK on 16 September 2026. Check the current figures before you claim.
How PayTrader handles this
PayTrader takes the chasing out of stage payments.
- You agree the job with your customer as stages in the app.
- The customer pays for each stage before you start it. It's held by our regulated payment provider, so you know it's there.
- When the stage is done, you send photos through the app.
- The customer approves and the stage is released to you. If they don't approve or raise an issue within 14 days of the stage being marked complete, it releases automatically.
You verify your identity with our payment provider before you're paid. It's a small fee when you're paid, with no subscriptions.
Join the waitlistRelated guides
Common questions
Can I stop work if a stage isn't paid?
Only if your written agreement allows it. Stopping without that could put you in breach of the agreement. Check your terms first, and get advice if you're unsure.
Can I charge a homeowner interest for paying late?
Only if your written agreement says so. The statutory late payment interest rules apply to business customers, not homeowners.
How much does it cost to take a customer to court?
In England and Wales the court fee depends on the amount: for example £205 for a claim of £3,000.01 to £5,000, and £455 for £5,000.01 to £10,000 (GOV.UK). There can be further fees later in the process.
Sources
- GOV.UK — Late commercial payments: charging interest and debt recovery
- GOV.UK — Make a court claim for money
- GOV.UK — Make a court claim for money: court fees
- Which? — How to use the small claims court
This guide is general information, not legal or financial advice. The figures and court limits above apply in England and Wales unless we say otherwise; rules differ in Scotland and Northern Ireland. If you're unsure about your situation, Citizens Advice can help for free.