About Us
Contact Us
Get Started Sign In
Invoice Claims is Whatsapp Integrated. Access our whatsapp business chat for live support.
Connect With Our WhatsApp!
Whawoo Logo - Whawoo helps business build Super Sales and Marketing Platform using Whatsapp Business.
Quick Connect
Scan Our QR Code...
Alternatively, Enter your number to connect...

Limitations Act 1980

Helping businesses understand their rights when chasing Invoices.

What Is The Limitations Act 1980?

The Limitations Act 1980 outlines the time limit within which a creditor can chase a debtor for outstanding debts within England and Wales. The Act is only enforceable when no prior contact has been made between the creditor and the debtor within the given time period.

When Should You Officially Send An Invoice?

Under the Limitations Act 1980 Creditors have up to 6 years to raise an invoice for goods and/or services rendered providing they have proof of work. A business customer (i.e. the debtor) cannot therefore refuse to pay a legitimate invoice simply because a few years may have passed although it is of course not advised to leave sending invoices this late. Ideally all invoices should be sent immediately after the completion of work (using the 14 day rule).
Window of Time

What Is The Time Frame For Sending An Invoice?

​Despite being given 6 years to raise an invoice, this time limit can possibly be extended depending on the type of debt at the courts discretion or if the debtor admits to owing the money or made a partial payment towards the outstanding debt as this would be an admittance of liability.
Simple Contract

What Happens If An Invoice Is Still Due & Past 6 Years Overdue?

​Most invoices and debts fall under the definition of a 'Simple Contract' in the Limitation Act, meaning you have six years to commence legal action to recover the debt in England and Wales if no prior contact has been made. However if a creditor approaches the debtor after 6 years then the outstanding claim may be “statute barred” under The Limitations Act 1980 meaning that whilst the whole debt or remaining debt still effectively exists and is due, it cannot be pursued and various legal routes are restricted.
Invoice Claims

Free Invoice Building & Billing Software

Use Invoice Claims
Invoice Time Period

When does the 6 year period begin?

For simple contracts the Act states that the limitation period will expire six years after the 'cause of action'. A 'cause of action' is defined when a breach of your agreement has occurred.
Cause Of Action

Examples Of When Invoices Have Entered The Cause Of Action Stage...

The payment terms of an invoice have passed without a payment being made i.e. after 7, 30, 45 or 60 day payment terms.
A scheduled payment is missed and becomes overdue i.e. a business customer misses an instalment causing the whole balance i.e. debt to become due.
When an agreement or contract has been breached by an event.
The date of the last correspondence with the debtor discussing payment i.e. if there is an admittance of debt during the 6 year period then this effectively grants you another 6 years to chase the debt providing there is evidence of correspondence.
County Court Judgment

What Happens After You've Issued A CCJ?

If during this time you have successfully enforced a CCJ against a debtor then the 6 year period may not apply or provide your business with another 6 years to reclaim the outstanding debts.

Chasing a debt post “statute barred” is not advisable as it could possibly lead to a harassment claim against your company under the Administration of Justice Act 1970. And a business cannot issue a CCJ against a debtor once the 6 year "statute barred" has been enforced.

Our Blog

Our Latest Blog News

Latest Advice & Information on Finance and Invoicing.
Aug 5, 2022
Invoice Claims.

How to climb the Invoice Hierarchy

Your business may be the best business in the world, making and selling the best products or services on the market...
Aug 5, 2022
Invoice Claims.

Reduce your Invoice payment days and improve...

As the Supplier of goods and services to other businesses in the UK, you have the power to decide payment terms prior...
Aug 5, 2022
Invoice Claims.

Many small business owners embarrassed by asking...

Many businesses in the UK suffer in silence when waiting on their business customers for Invoice payment. Many small business...
background circle patternbackground circle patternbackground circle patternbackground double circle pattern
background triangle patternbackground square pattern

Try our automated credit control management SaaS FREE today.

No costs or upfront contracts simply create an account and start using all of our cool features.

Get More Updates!

Subscribe to our newsletter...

2024   ©   Passive Software. All rights reserved. VAT Reg: 456 8774 36