How Long Can You Chase An Unpaid Invoice? Time Limits Across The UK
Every unpaid invoice comes with a clock attached. Most businesses know roughly what they're owed, but far fewer know how long they have to do something about it, and the answer is different depending on where you are in the UK.
In short: for most business invoices, the general time limit to pursue the debt is six years in England, Wales and Northern Ireland, and five years in Scotland. The clock generally starts when the invoice falls due for payment, not when you last chased it. Once the deadline passes, the position changes significantly, which is why acting early matters.
The Time Limits At A Glance
England and Wales work under the Limitation Act 1980. For most simple contract debts, including unpaid invoices, a claim generally needs to be brought within six years.
Northern Ireland reaches a similar six-year position through its own legislation, the Limitation (Northern Ireland) Order 1989.
Scotland is different. Under the Prescription and Limitation (Scotland) Act 1973, most trade debts and invoices generally prescribe after five years, a year shorter than in England.
These are general rules, and exceptions exist, but they give a useful picture of how much time you really have.
Scotland Is Not The Same As England
It's a common misconception that the rules are identical across the UK. For businesses trading in more than one part of the country, the one-year gap matters, particularly when an invoice is approaching the five-year mark in Scotland while still seeming comfortably in time under English rules.
There's also a difference in what happens when time runs out. In England and Wales, an expired debt generally still exists but can no longer be enforced through the courts, and the debtor has to raise the time limit as a defence. In Scotland, once the prescriptive period has run, the obligation is extinguished altogether.
One further Scottish point is worth knowing. Simply issuing court proceedings isn't generally enough to stop the clock in Scotland. The proceedings need to be served on the debtor.
What Starts And Restarts The Clock
The clock generally begins on the date the debt falls due. So an invoice raised in January with 30-day terms starts its countdown at the end of that 30-day period, not on the day it was issued.
The clock can also be reset. In general, a part-payment or a written acknowledgement of the debt from the debtor can restart the period. This is one reason a debtor who has gone quiet but made an occasional token payment can still be pursued, and why keeping a clear record of any contact or payment is worthwhile.
Why Old Invoices Aren't Necessarily Lost Causes
A lot of businesses write off older invoices because they assume the trail has gone cold. In practice, an invoice that has been outstanding for a year or two is often still well within the time limit, and on commercial debts interest can continue to build under late payment legislation while it sits unpaid.
We recently recovered an invoice that had been overdue for over three years, along with the interest that had accumulated in the meantime. Because it hadn't been left until the deadline, there was still room to act.
What To Do If You're Carrying Old Invoices
Review your ledger for anything that has been outstanding for more than a year, and note the date each invoice fell due, not just the date it was raised. If you're approaching the five-year mark in Scotland, or the six-year mark elsewhere, treat that as urgent rather than something to come back to. And where an old debtor has gone quiet, don't assume the time has already passed without checking.
The earlier an overdue invoice is passed on, the more options are open, and the less likely the deadline is to become the deciding factor. If you have invoices sitting on your books, specialist commercial debt recovery can help you recover what you're owed while there's still time to act.
This article provides general information only and isn't legal advice.
FAQs
How long do you have to chase an unpaid invoice in the UK?
Generally six years in England, Wales and Northern Ireland, and five years in Scotland, usually measured from the date the invoice fell due.
Does an unpaid invoice disappear after the time limit?
It depends on where you are. In England and Wales, the debt generally still exists but can't be enforced through the courts. In Scotland, the obligation is extinguished once the prescriptive period has run.
What restarts the time limit on an old invoice?
Generally, a part-payment or a written acknowledgement of the debt from the debtor can restart the clock.
Is the time limit the same in Scotland and England?
No. Scotland's period is generally five years and England's is six, and the consequences of the period expiring are also different.
Should I chase an invoice that's a few years old?
Often, yes. Many older invoices are still within the time limit, and the sooner they're pursued, the more options you have.
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