Unpaid Invoice in Scotland: How to Sue Through Simple Procedure

Your Client Won't Pay — Now What?

You've done the work, sent the invoice, chased it twice, and heard nothing back. If you're a sole trader, freelancer, or small business owner in Scotland with an unpaid invoice of £5,000 or less, the Sheriff Court's Simple Procedure is the mechanism built for exactly this situation. The filing fee is £23 for claims of £300 or less, or £127 for claims over £300, and you don't need a solicitor.

But before you file, you should understand what you can claim beyond the invoice itself — because the Late Payment of Commercial Debts (Interest) Act 1998 puts some serious teeth behind business-to-business debts.

What You Can Claim

For a commercial (B2B) unpaid invoice, your claim can include three components:

The principal sum: the invoice amount itself, up to £5,000.

Statutory interest: for business-to-business debts, you can claim interest at 8% above the Bank of England base rate under the Late Payment Act. This applies from the date payment became due under your contract or applicable payment terms.

Fixed compensation: the Late Payment Act also entitles you to a flat compensation amount on top of interest:

• £40 for debts up to £999.99
• £70 for debts between £1,000 and £9,999.99
• £100 for debts of £10,000 or more

For non-commercial debts (consumer claims), you can still request judicial interest at 8% per annum, but the Late Payment Act compensation doesn't apply.

Remember that the £5,000 limit applies to the principal sum only — interest and expenses sit outside the cap. So a £4,800 invoice with accrued interest can still go through Simple Procedure.

The Five-Year Clock

Scotland's negative prescription period for contractual debts is generally five years from the date payment became due. If five years pass without a relevant claim or relevant acknowledgement, the debt is extinguished as a matter of law.

Crucially, sending demand letters and chasing by phone does not pause the clock. Formal judicial service of the registered Claim Form interrupts prescription; a relevant acknowledgement by the debtor can also interrupt it. If your oldest unpaid invoice is approaching the five-year mark, act fast.

Before Filing: The Demand Letter

Send a formal pre-action demand letter by recorded delivery, giving the debtor at least 14 days to pay. Include the exact invoice amount, the date it was due, the statutory interest accrued to date, the Late Payment Act compensation, and a clear statement that you'll file a Sheriff Court claim if they don't pay by the deadline.

A well-drafted demand letter resolves many unpaid invoice disputes without court action. The debtor realises you're serious, and paying up is cheaper than dealing with a court case.

Filing the Claim

Complete Form 3A on Civil Online. In Section C, specify the principal sum, interest calculation, and compensation. In Section D, set out the chronology: when you were engaged, what work you performed, when you invoiced, the payment terms, and the debtor's failure to pay. Upload the contract (or email chain establishing the engagement), the invoice, proof of delivery or completion, and copies of your demand letter with tracked delivery confirmation.

Identify the debtor correctly. If it's a limited company, search Companies House for the exact name and registration number. If it's a sole trader, sue the individual behind the trading name.

When the Debtor Doesn't Respond

Undefended invoice claims are common — debtors who ignored the invoice often ignore the court papers too. If no Form 4A response arrives by the deadline, submit Form 7A within 14 days, attaching the mandatory Expenses Claim Form (required since Cabot v Walls, May 2025). The sheriff can then grant a decree for the full amount including interest.

Collecting the Money

A decree orders payment but doesn't deliver the cash. After a four-week statutory wait, and if no appeal or recall is pending, instruct a Sheriff Officer to serve a Charge for Payment giving the debtor 14 days to pay (28 days if outside the UK or the address is unknown). If they don't, enforcement options include earnings arrestment, bank account arrestment, and attachment of goods.

The Scotland Simple Procedure Guide includes an interest calculator worksheet and a Form 3A preparation template designed specifically for invoice claims, so you can assemble the numbers before you start typing into Civil Online.

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