Past Due Invoice Template
A past due invoice is the original invoice sent again once its due date has passed, marked so nobody can mistake it for a new bill. It keeps the original invoice number, date and amount, and adds what has changed: how many days it is overdue, any part payment received, the balance still owed, any late fee or interest you are entitled to charge (shown separately, with how it was worked out), a firm date for payment and what happens next. Many unpaid invoices are not disputes; they are lost, stuck in an approval queue or sent to the wrong person, so the first job of a past due invoice is to make paying easy: the balance, the payment details and a named contact. The second job is to put the late-payment terms on record without overstating them, because in the United States there is no single legal late-fee cap and what you can charge depends on your contract and your state, while in the United Kingdom business debts carry statutory interest. The download is an editable HTML invoice with invoice number, dates, a line-item table and totals. Fill it in your browser and print it or save it as PDF.
Preview this editable document
Download the HTML file to edit its fields, then print or save as PDF. Totals are entered manually.
What This Template Includes
- PAST DUE marking, with the original invoice number
- Original invoice date and original due date
- Days overdue on the date of this notice
- Original invoice amount
- Payments received, with dates
- Balance outstanding
- Late fee or interest, as a separate line with rate, period and calculation
- Contract or statutory basis for the late fee or interest
- New payment deadline
- Payment methods and details
- Contact name for payment questions
- Next step if unpaid by the new deadline
How to Create Your Past Due Invoice
- 01
Describe your work
Type a plain English description of the services you provided, the client, and the amount.
- 02
AI generates your invoice
InvoiceQuickly's AI drafts the client, line items, dates, and totals for you to review before saving.
- 03
Review, download, and send
Check every detail, download the PDF, or use Pro to email the PDF directly to your client.
Recommended Payment Terms
Do not invent new terms on a past due invoice: the original terms still apply, and a late fee or interest is only enforceable if your contract allowed it or, in some countries, if the law gives it to you. Give a short, specific deadline ('Please pay the balance of $2,901.88 by Thursday 12 November 2026') rather than 'immediately', and name the person to contact if something is wrong with the invoice. Keep the sequence predictable: a friendly reminder a few days after the due date, a past due invoice with the balance and any late charges once the account is clearly overdue, then a final notice that states the next step, such as pausing work or passing the debt to a collection agency. Always deduct part payments before calculating anything, and accept a payment plan in writing if it gets the balance paid.
Need help writing payment terms? Read our guide to invoice payment terms for best practices and templates.
Tax Information
A late fee or interest charge is a separate amount from the original sale, so keep it on its own line and do not change the original invoice's tax. In the United States, whether a late charge is subject to sales tax depends on the state, so check your state revenue department before adding tax to it. In the United Kingdom, HMRC's VAT guidance says interest awarded or agreed because of late payment is outside the scope of VAT, as compensation for payment being delayed (VAT Supply and Consideration manual, VATSC06810), so do not add VAT to it. InvoiceQuickly cannot add a late-fee line to a sent invoice (only drafts can be edited), so bill any late charge on a separate invoice that references the original, with the tax rate set as your local rules require. General information, not legal or tax advice.
Industry context (2026)
Late-payment rules depend on where you and your client are. In the United States there is no single federal cap on late fees for business invoices; limits come from the contract and from state interest and usury statutes. Texas Finance Code section 302.002 lets a creditor with no agreed rate charge legal interest of 6% a year, beginning on the 30th day after the amount is due (Texas Legislature, accessed 27 October 2026 for our late fee laws guide). In the United Kingdom, the Late Payment of Commercial Debts (Interest) Act 1998 gives business-to-business debts statutory interest of 8% plus the Bank of England base rate, unless the contract sets a different rate, and a fixed recovery sum of £40 for debts up to £999.99, £70 up to £9,999.99 and £100 above that (GOV.UK, accessed 28 October 2026). The base rate used is the one in force on 30 June for late payments in July to December, and on 31 December for January to June (SI 2002/1675). Bank Rate is 3.75%, held at the June, July and September 2026 decisions, with the next decision on 5 November 2026 (Bank of England, accessed 28 October 2026), so the statutory rate for the second half of 2026 is 11.75%. General information, not legal or tax advice.
Worked example
Worked example (illustrative figures): a US design studio issued INV-0091 for $3,850.00 on 1 September 2026, net 30, so it was due 1 October. The signed contract says overdue balances accrue simple interest at 1.5% a month (18% a year) from the due date. The client paid $1,000.00 on 15 October. On Monday 2 November, 32 days after the due date, the studio sends a past due invoice. Header: 'PAST DUE: INV-0091, issued 1 September 2026, due 1 October 2026, 32 days overdue.' Original amount $3,850.00; payment received 15 October $1,000.00; balance $2,850.00. Interest, shown separately: $3,850.00 × 18% × 14/365 (1 to 15 October) = $26.58, plus $2,850.00 × 18% × 18/365 (15 October to 2 November) = $25.30, total $51.88. Amount due $2,901.88, to be paid by Thursday 12 November by bank transfer or card; questions to the named billing contact; if unpaid, work on the next phase pauses on 13 November, as the contract allows. Two contrasts. Had the contract said nothing about interest, a Texas studio could charge only legal interest of 6% a year, and only from the 30th day after the due date, so almost nothing at this point. A UK studio owed £4,200 by a business client, 45 days late with no contract rate, could claim statutory interest at 11.75% (8% plus the 3.75% base rate on 30 June 2026): £4,200 × 11.75% × 45/365 = £60.84, plus a £70 fixed sum for a debt between £1,000 and £9,999.99, so £4,330.84 in total. In InvoiceQuickly, record the $1,000 part payment against INV-0091 and bill the $51.88 on a separate invoice: 'Late payment interest on INV-0091, 18% a year, 1 October to 2 November 2026'.
Common mistakes to avoid
Charging a fee the contract never mentioned
A late fee that first appears on the past due invoice is hard to enforce in the US. Charge only what the contract or the law allows, and agree a clear term for future work.
Interest on the wrong amount
Charging interest on the original $3,850 after the client paid $1,000 overstates the charge. Work it out on the balance for each period, and show the calculation.
A new invoice number for the same debt
Re-issuing the debt under a new number can lead to the client paying twice or rejecting both. Keep the original number and mark it past due.
Vague deadlines and threats
'Pay immediately or face action' is less effective than a dated deadline and a stated, proportionate next step you will actually take.
Adding VAT to UK late-payment interest
HMRC treats interest for late payment as compensation outside the scope of VAT. Do not add VAT to the interest line.
Invoicing Tips
- 1Keep the original invoice number. A past due invoice is the same debt; a new number makes it look like a second bill and can lead to double payment or a rejected invoice.
- 2Show the arithmetic for any late charge: '$2,850.00 at 18% a year for 18 days = $25.30'. A charge the client can check is a charge they are more likely to pay.
- 3Calculate interest on the balance actually outstanding for each period, not the original amount, once a part payment has come in.
- 4Check that the invoice reached the person who pays. Ask for the accounts-payable contact and whether a purchase order number or supplier form is missing before you escalate.
- 5Separate the late charge from the balance in your request: clients sometimes pay the original amount and dispute the fee, and you want the balance in either case.
- 6Write down every contact: date, channel and what was said. It is what you need if the account goes to a collection agency or small claims court.
Related Resources
- Late fee calculator: interest on an overdue invoice, including the UK statutory rate
- Invoice late fee laws by US state
- Payment reminder templates
- Late payment guide
- All invoice templates
Frequently Asked Questions
What is a past due invoice?
A past due invoice is an invoice that was not paid by its due date. As a document, it is the original invoice re-sent with a PAST DUE marking, the days overdue, payments received, the balance, any agreed late fee or interest shown separately and a new deadline.
How do I write a past due invoice?
Start from the original invoice and keep its number and dates. Add 'PAST DUE', the days overdue, any part payments, the balance, a separate late-fee or interest line only if your contract or the law allows it, the calculation, a specific payment deadline, your payment details and a contact name.
How much can I charge as a late fee on a past due invoice?
In the US there is no single federal cap. It depends on what your client agreed to and your state's interest and usury laws: Texas, for example, allows 6% a year from the 30th day after the due date when no rate was agreed. In the UK, business debts carry statutory interest of 8% plus the Bank of England base rate unless the contract sets a rate.
Can I add a late fee if it was not in the contract?
In the US, generally only the interest state law allows when no rate was agreed, such as 6% a year in Texas from the 30th day after the due date, or 10% a year after breach in California. In the UK you can claim statutory interest and a fixed recovery sum on business debts even if the contract is silent. Agree a late-payment term before the next job.
What is UK statutory interest on a late invoice?
For business-to-business debts, 8% a year plus the Bank of England base rate on the reference date, simple interest, plus a fixed sum of £40, £70 or £100 depending on the size of the debt. With the base rate at 3.75% on 30 June 2026, the rate for late payments in the second half of 2026 is 11.75%.
Should a past due invoice have a new invoice number?
No. It is the same debt, so keep the original number and dates and mark it past due. If you charge interest or a late fee, you can bill it on a separate invoice with its own number that references the original.
Does InvoiceQuickly mark invoices as overdue and send reminders?
On Pro, scheduled reminders go out before and after the due date, and an invoice is marked overdue when an overdue reminder is sent. Free has no email sending or reminders, so overdue status is not set there. You can record part payments on every plan, and the late fee calculator works out interest.
When should I send a past due invoice?
After a friendly reminder has gone unanswered, typically once the invoice is clearly overdue rather than a day or two late. Send it to the person who pays invoices, with the original attached, and follow up with a final notice stating the next step if the new deadline passes.