I Forgot to Invoice Someone - Is There a Time Limit?

January 29, 2025

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How Late can an Invoice be Issued and Remain Valid?

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I've Forgotten to Invoice - Is There a Time Limit?

Making sure invoices get raised on time is a vital part of good credit control and helps business cash flow. Until you raise the invoice, you won’t get paid. It really is as simple as that. So the sooner you invoice the better.

Remember a customer is not going to chase you asking you to invoice them as they will want to keep the cash. It is really important you keep on top of invoicing otherwise it will seriously affect your cash flow.

However some SMEs struggle to get their invoices out in good time. Perhaps business is booming and there just doesn’t seem to be enough hours in the day to get all the jobs done.You come to do your monthly or year-end accounts and realise you haven’t invoiced a customer for a job you completed several months ago, or perhaps even longer than that.

Can I Just Raise the Invoice Now?

Well in short the answer is yes, unless more than six years have passed. The only regulation placing a time limit on collecting a genuine debt is the Limitation Act 1980.

Although you have the right to invoice, where the invoice is over 6 months old we would recommend to include a covering letter apologising for the delay or simply calling your customer beforehand to discuss the matter. This is especially true if the invoice is for a large amount and could cause difficulties at their end when it finally appears!

If they have been prudent then they should have accrued this bill in their accounts, especially if it is a large amount. However for many businesses a late invoice may come as a shock when they receive the invoice.

As for any invoice, you need to make sure you still have all the information on record required to get the invoice signed off - the clients purchase order, contracts, quotes and proof of delivery such as a signed delivery note or works sign off sheets. This way although they may question the lateness of the invoice they cannot dispute it.

Can I Apply Late Payment Interest?

While you have a statutory right to apply late payment interest and compensation to overdue invoices, since the lateness of the invoice is down to your own error then we would not suggest you apply late payment interest to it.

However, if you have been unable to issue the invoice due to the customer’s error – for instance if they held things up by failing to issue you with a purchase order number - then you could apply these additional charges. You can use our late payment interest calculator to calculate the amount to add. Backdate the invoice to the day you completed the works again make sure you have your signed contract to hand in case they dispute the invoice.

For more information on how to make sure your invoices are up to scratch take a look at this article and infographic on how to get your invoices right.

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How we can Help:

Outsourced Credit Control Service

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FAQs

Find answers to common questions about our debt collection and credit control services.

Is there a time limit for issuing an invoice?

Under the Limitation Act 1980, invoices can be issued up to six years after the work was completed or the goods were delivered. While there is no legal restriction within this time frame, issuing invoices promptly is always best to avoid disputes or complications. For older invoices, consider contacting the customer beforehand to explain the delay and provide any supporting documentation, such as purchase orders or delivery notes.

Can I apply late payment interest to a delayed invoice?

If the delay in issuing the invoice is your fault, it’s not advisable to apply late payment interest or compensation, as this may strain the customer relationship. However, if the delay was caused by the customer, such as failing to provide necessary details like a purchase order number, you are within your rights to apply late payment charges. Ensure the invoice is backdated to the completion date and provide any necessary documentation to support your claim.

What should I do if a customer questions the lateness of an invoice?

Be prepared with all relevant documentation, such as signed contracts, proof of delivery, or purchase orders, to confirm the validity of the invoice. Adding a covering letter or calling the customer to explain the delay can help smooth over any concerns, especially if the invoice is significant or unexpected. Clear communication can prevent disputes and encourage prompt payment.