When Is an Invoice Considered Overdue in the UK?

An invoice is generally overdue when the agreed payment due date has passed and the customer has not paid. For UK businesses, the payment terms should ideally be agreed with the customer and clearly stated on the invoice.

When Does an Invoice Become Overdue?

If you agreed payment terms, the invoice becomes overdue once that period has expired.

For example:

Invoice date: 1 September
Payment terms: Net 30
Due date: 1 October
Overdue from: 2 October

The same principle applies to Net 7, Net 14 or Net 60 terms.

What If No Payment Date Was Agreed?

If there is no agreed payment date, UK law generally treats a business payment as late 30 days after the customer receives the invoice or after you provide the goods or services, if that happens later.

So if no specific terms were agreed, the statutory 30-day rule normally provides the benchmark.

Can UK Companies Set Their Own Due Dates?

Yes. Businesses can generally agree their own payment terms.

For example:

• Payment upfront
• Net 7
• Net 14
• Net 30
• Net 60

For business-to-business transactions, an agreed payment date should usually be within 60 days, although a longer period can be agreed if it is fair to both businesses.

Can You Charge Interest on an Overdue Invoice?

For qualifying B2B debts, a UK company may be entitled to charge statutory interest at 8% plus the Bank of England base rate, unless the contract provides a different substantial remedy for late payment.

Fixed debt-recovery charges may also apply:

Up to £999.99 → £40
£1,000–£9,999.99 → £70
£10,000 or more → £100

What Should You Do When an Invoice Becomes Overdue?

Contact the customer promptly and:

1. Confirm they received the invoice.
2. Check whether there is a genuine dispute.
3. Send a payment reminder.
4. Provide the invoice and payment details again.
5. Give a clear deadline for payment.
6. Consider late-payment interest or recovery action if the invoice remains unpaid.

Final Answer

A UK invoice is normally considered overdue once its agreed payment due date has passed without payment.

For example:

Net 14 → Overdue after 14 days
Net 30 → Overdue after 30 days
Net 60 → Overdue after 60 days

If no payment date was agreed, payment generally becomes late after the statutory 30-day period.

GOV.UK guidance on late commercial payments

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