Late Payment as a Gas Engineer: What You Can Do

Gas engineers who are owed money have more legal protection than many realise. The Late Payment of Commercial Debts (Interest) Act 1998 gives businesses the right to charge interest and recovery fees on overdue invoices — even if the customer is a domestic homeowner, as long as you specify these terms in your contract or terms of business.

For business-to-business debts (landlords, letting agents, commercial clients), the Act automatically applies without the need for specific contract terms. Statutory interest accrues at 8% above the Bank of England base rate from the day after the invoice due date. You're also entitled to a fixed debt recovery charge:

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

These amounts are not a punishment — they're compensation for the time and cost of recovery. Use them when chasing serial late payers; they often prompt payment without further action.

Effective debt recovery requires a consistent, escalating process — not sporadic chasing when you remember. Build this process into your invoicing workflow:

• Day 0 (invoice sent): Invoice with clear payment terms ("payment due within 14 days"), your bank details or payment link, and your payment methods
• Day 1 after due date: Automatic reminder (configure this in your invoicing software). Friendly, no accusation: "This is a reminder that invoice #[number] for £[amount] is now due. Please pay by bank transfer to [details] or use the payment link above."
• Day 7 overdue: Phone call. Brief and professional. "Hi, I'm calling about invoice number [X] which was due on [date]. Is there anything preventing payment?" Most customers at this stage have simply forgotten
• Day 14 overdue: Formal letter or email referencing the Late Payment Act: "I am writing to inform you that under the Late Payment of Commercial Debts (Interest) Act 1998, interest is now accruing on the overdue amount at 8% above base rate, plus a £[40/70/100] statutory recovery fee. The total now due is £[X]."
• Day 28 overdue: Notice of intended legal action. "If payment is not received within 7 days, I will commence proceedings in the small claims court to recover the debt."

Small claims is often the most cost-effective route for unpaid invoices under £10,000 (the small claims limit in England and Wales). The process is straightforward and doesn't require a solicitor:

1. Attempt mediation first — many disputes settle without court
2. Submit a claim online at moneyclaimonline.service.gov.uk. The fee is £35–£455 depending on the claim value (e.g. £80 for a £1,000 claim), refundable if you win
3. The defendant has 14 days to respond. If they don't, you can request a default judgment immediately
4. If they respond and dispute the claim, the court sets a hearing date. For claims under £10,000, hearings are informal and the judge applies common sense
5. If you win, the judgment can be enforced against the debtor's assets or bank account via a warrant of execution

Before going to court, send a final "letter before claim" (sometimes called a letter before action). This is a formal final demand giving the customer 14 days to pay, warning that court proceedings will follow. Many customers pay at this point — the letter makes the threat credible and specific.

Prevention is better than cure. The most effective ways to reduce late payment:

• Require deposits on all jobs over £300–£500. A 20–30% deposit confirms the customer's commitment and means you're never doing work that is entirely at risk of non-payment
• Take card payment on site at job completion for domestic work. A portable card reader (SumUp, Square) eliminates the invoice stage entirely for routine jobs
• Credit check new commercial customers before extending credit. Services like CreditSafe (from £15/month) allow you to check a company's payment history before agreeing extended terms
• Include payment terms in your quote, not just your invoice. If a customer accepts your quote with stated payment terms, there is no ambiguity when the invoice arrives
• Review your worst payers annually. Some customers are consistently late every time — they're not an accident, they're a pattern. Stop quoting for them, or require full upfront payment before attending

For debts that small claims won't efficiently resolve (complex commercial disputes, customers who have moved, or amounts that don't justify your personal time), a debt collection agency is an option.

Most trade debt collection agencies work on a contingency basis — no recovery, no fee. They typically take 10–25% of the recovered amount, depending on the age and size of the debt. This is money you might otherwise never see.

For gas engineering debts, reputable agencies include TGS, Commercial Collections, and local firms. Avoid agencies that ask for large upfront fees — the contingency model aligns their incentives with yours.

Use agencies for debts over 60 days old where your own chasing has failed. Below that threshold, the statutory interest and court process is usually more cost-effective and quicker.