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How to recover an unpaid invoice through the small claims court in England & Wales. What to claim (including statutory interest), the 5-step process, evidence you need, and common pitfalls.

The full outstanding balance including VAT if applicable.

Under the Late Payment of Commercial Debts Act 1998, for B2B debts. For personal debts the court can award up to 8% simple interest.

Fixed compensation for chasing the debt: £40 (under £1,000), £70 (£1,000–£9,999), £100 (£10,000+).

Recoverable from the defendant if you win.

Make sure payment terms are clear — 30 days is standard for B2B. Include late payment interest wording on the invoice.

Chase formally in writing

If unpaid after the due date, send a formal chaser by email and post. Give 7 days before escalating.

Send a Letter Before Action

This is your final warning before court. Give 14 days. State the total including interest and debt recovery costs.

File via Money Claim Online (MCOL) or an N1 form. Pay the court fee. The claim is served on the defendant by the court.

If undefended, apply for default judgment. If defended, attend the hearing. Judgment is usually given on the day.

How to recover an unpaid invoice through small claims court

Step-by-step process for recovering an unpaid invoice through the small claims court in England and Wales.

Make sure payment terms are clear. Include late payment interest wording and give a clear due date.

Send a final warning letter giving 14 days to pay. State the total including interest and any debt recovery costs.

Issue the claim via MCOL

File online via Money Claim Online (MCOL) or an N1 form at court. Pay the court fee. The court serves the claim on the defendant.

Don't just claim the invoice value — you're entitled to more.

The 5-step recovery process

Before you go to court

Pre-action protocol means you must send a Letter Before Action at least 14 days before filing. The letter states the total you are claiming (principal, statutory interest, and debt recovery costs), gives a deadline, and warns that you will issue proceedings without further notice. Skipping this step is a mistake: the court can penalise you in costs at the end of the case regardless of whether you win. It also often produces payment without filing at all.

If the other side makes a partial payment after receiving the letter, write back immediately. Acknowledge what they have paid, update the outstanding balance with interest recalculated to the payment date, and give a new deadline for the remainder. Do not accept a partial payment "in full and final settlement" unless you genuinely intend to drop the rest.

Once you have a judgment, the defendant has 30 days to pay voluntarily. If they do not, you apply for enforcement. A warrant of control sends enforcement officers to their home or business to seize goods. Attachment of earnings takes deductions straight from wages. A third-party debt order freezes money in their bank account. For property owners, a charging order secures the judgment against the property.

Enforcement adds court fees (around £77 to £124 for a warrant of control) but those are recoverable from the debtor. For businesses, something that often works before enforcement becomes necessary: a County Court Judgment registered against a company sits on their credit file for six years and can damage their ability to get credit, insurance, and contracts. Many businesses pay quickly once a judgment lands.

Small claims court process

Letter Before Action