Did you know that you can still claim late payment compensation on paid invoices? Even once your client settles the bill. Our brief guide shows you how.


Late payments take a huge toll on your business, from preventing growth to hindering cash flow. That’s precisely why the UK government has legislation in place to reduce the impact of late payments on your organisation.

This legislation protects your business and means you can still claim compensation even after your client pays the invoice in full. As long as you receive the money outside of the payment window, you can claim compensation.

And that’s what we cover in this guide. In just four minutes, you’ll learn:

  • What late payment compensation claims are
  • The legislation surrounding untimely payments 
  • Eligibility criteria for making a claim
  • How to make a claim even if the invoice has already been paid

Let’s start with a brief overview of how late payment compensation claims work.

What Is a Late Payment Compensation Claim?

Your business can make a late compensation claim if a public sector authority pays you outside of the set payment window. The Late Payment of Commercial Debts (Interest) Act 1998 and the EU Late Payment Directive lay out the timeline for this.

These legislations, along with the Public Contract Regulations 2015, recognise the negative impact late payments can have on businesses. Therefore, they act as a form of protection for businesses that provide goods and services to the public sector.

Not sure if your payment is late under these laws? Check our dedicated guide.

Late Payment Regulations in the UK

Under the legislation above, your business can claim compensation on every invoice payment you receive after the due date. 

As such, it’s a good idea to review old invoices to see if you can potentially make a claim.

If you’re in England, Wales, or Northern Ireland, you have six years to make a retroactive late payment compensation claim. And for those residing in Scotland, you have five years.

You can claim between £40 to £100 in compensation for every invoice that was paid late, even if the client has now paid you. The exact amount you can claim back depends on the amount of money on the invoice.

Do you want to know how to claim late payment compensation on invoices? latepaymentaction.com can help.

We’re a team of industry specialists dedicated to helping businesses claim the compensation they deserve from the public sector.

After years of experience, we understand that navigating the claims process alone can be complex and time-consuming. So, we came up with a streamlined four-step process.

Discover how it works below.

Claiming Late Payment Compensation After an Invoice Is Paid

If don’t know whether or not you’re eligible to claim late payment compensation on paid invoices, keep reading.

Your business could be missing out on thousands of pounds of compensation that could go towards expanding your growth.

Here’s how our patented four-step late payment compensation claims process works:

Step 1: Check your eligibility 

Before we begin the claims process, we first recommend that you check your eligibility. This will determine whether you’re a good candidate to make a claim.

The easiest way to do this is by using our free Eligibility Checker.

In just a couple of minutes, you can find out if your business is entitled to money back from the public sector.

Step 2: Estimate how much you can claim

While not essential, we recommend next calculating how much you could potentially earn in compensation. That way, you can decide whether it’s worth making a claim or how far back you should go when reviewing your invoices.

A simple way to do this is with our free claim calculator.

All you have to do is answer a few quick questions, and it will give you an estimate of how much you can earn.

Step 3: Get the ball rolling

Now you know that you’re a good candidate and how much you could potentially claim, it’s time to get started.

Our team has created a fast and straightforward way for you to start your claim without any hassle.

Simply begin your claim here and set aside a few minutes to answer the questions. Next, we’ll send you an electronic claims pack to fill out.

Step 4: We’ll take the reins

Once we receive this information, we’ll take it from here. Our experts have years of experience in this area and use it to maximise your chances of success.

We’ll send you regular updates throughout the full process, allowing you to focus on your daily operations.

For total peace of mind, we operate on a “no-win, no-fee” basis. 

You can find more information about the full process on our FAQ page.

Claim Late Payment Compensation On Paid Invoices Today

If you have received late payments from the public sector within the past six years, you may be owed thousands of pounds in compensation.

Even if the money has now been paid, UK legislation recognises your right to make a claim. With our simple four-step claims process, you can get back the money you deserve quickly and easily.

Our experts will work tirelessly on your behalf, so you can concentrate on what matters most: growing your business.

Check your eligibility for free.


We answer some of the most common questions about claiming late payment compensation on paid invoices.

Can I claim late payment compensation on paid invoices?

Yes, you can make a retroactive claim for late payments even after the client pays you for the invoice. As long as the payment falls outside of the payment window.

What’s the time limit to make a late payment claim? 

You have six years to make a late payment compensation claim if you’re in England, Wales, or Northern Ireland and five years for Scottish residents.

How much compensation can I claim for late public sector payments?

Under UK legislation, you can claim between £40 and £100 of compensation for every invoice you receive late payment for. The amount you can claim depends on the total on the invoice.

How do I know if I’m eligible to claim compensation for late payments?

Our free Eligibility Checker is a quick, easy, and accurate way to see how much you could earn in compensation.

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