How to Write a Letter to the Small Claims Court UK: A Complete Guide
- James Pite
- Jun 10
- 9 min read
Small claims court isn’t just for businesses. Anyone can use it. And a well-written letter before you file can settle the whole thing without you ever setting foot in a courtroom.
Every year, thousands of people in England and Wales recover money they are owed through the County Court small claims track, for disputes over unpaid invoices, faulty goods, poor services, deposits not returned, or debts of almost any kind up to £10,000. The process does not require a solicitor. The court fee is as low as £35. And most cases settle before any hearing takes place.
This guide explains the whole process: what small claims court is, how much it costs, what you must do before filing, how to write the letter before action that often resolves the dispute entirely, and how to actually file your claim if the other side ignores you.
What Small Claims Court Is and What It Can Do
Despite the name, there is no separate ‘small claims court’ in England and Wales. Small claims is a track within the County Court system. When you file a money claim, it is assessed and, if the amount is £10,000 or less, allocated to the small claims track. The process is designed to be accessible without legal representation. As the GOV.UK guide to making a court claim for money explains, you can apply online or by post, and the court guides you through each stage.
If you win on the small claims track, the other side pays your court fee and any interest awarded. Unlike higher tracks, the loser does not generally pay the winner’s legal costs, which means that even if the other side uses a solicitor, you will not be liable for their fees if you lose. This makes the small claims track genuinely low-risk for individuals pursuing legitimate claims.
What You Can Claim
The small claims track covers most everyday money disputes including:
Unpaid invoices or debts owed to you by individuals or businesses
Faulty goods or goods not delivered
Services not carried out properly or not completed
Deposits not returned by landlords, traders or service providers
Damage to property caused by someone else’s negligence
Holiday or event bookings cancelled without a proper refund
Disputes with builders, tradespeople or contractors
The general limit for the small claims track is £10,000. Personal injury claims have a lower limit of £1,000 for the injury element. Housing disrepair claims where a tenant has paid for repairs themselves are also capped at £1,000. For claims above £10,000 the fast track applies, with different costs rules and usually requiring legal advice.
The Most Important Step: The Letter Before Action
Before you file any court claim, you are expected under the Civil Procedure Rules to have given the other side a reasonable opportunity to settle. This is called a letter before action, or sometimes a letter before claim. It is not just a courtesy. A judge may penalise you on costs if you issue proceedings without first sending one.
But there is another reason to send it that matters even more than procedural compliance: it works. Most small claims disputes settle at this stage, without any court involvement at all. When the other side receives a clear, professional letter stating that court proceedings will follow if the matter is not resolved within a specific period, many pay. The threat of court, the cost of a court fee, a County Court Judgment on their credit record, and the inconvenience of defending a claim are all powerful incentives to settle.
A letter before action that is specific, factual and clearly written is one of the most cost-effective documents you can send. This guide gives you everything you need to write one yourself.
How to Write Your Letter Before Action
Identify the Correct Recipient
Make sure you have the correct legal name and address for the person or organisation you are writing to. For a limited company, this is the registered name and registered office address, available free from Companies House. For a sole trader, use their full name and business address. Getting this wrong can invalidate your claim if it progresses to court.
What to Include
A clear description of what is owed and why. Set out the facts in chronological order. What happened, when, what you paid or were owed, and what the other side failed to do.
The amount you are claiming. State the specific sum, including any interest you are claiming. You can claim interest at 8 percent per year under the County Courts Act 1984 for most debt claims.
The legal basis. A brief reference to why they owe you the money: breach of contract, Consumer Rights Act 2015 for goods or services, or another applicable basis.
A deadline. Fourteen days is standard for most disputes. Seven days is appropriate if the matter is more urgent.
What happens next. State clearly that you will issue court proceedings without further notice if you do not receive payment or a satisfactory response within the deadline.
Full Worked Example: Letter Before Action
[Your full name]
[Your address]
[Your contact details]
[Date]
[Full legal name of defendant]
[Registered address or last known address]
Letter Before Action – [Brief description, e.g. Unpaid Invoice / Faulty Goods / Return of Deposit]
Dear [Name / Sir or Madam],
I am writing to formally request payment of £[amount] which I believe is owed to me as a result of [brief description of the dispute, e.g. your failure to complete the building work agreed under our contract of [date] / your failure to return my deposit of £[amount] following the cancellation of [service] / the supply of faulty goods which have not been replaced or refunded despite repeated requests].
Background
On [date] I [describe the contract or transaction: agreed to pay you £[amount] for [service/goods] / paid a deposit of £[amount] in connection with [transaction]]. [Describe what happened next in chronological order, including what you did and what the other side did or failed to do. For example: The work was due to be completed by [date] but was abandoned on [date] without completion. Despite contacting you on [dates], the work has not been completed and no refund has been offered. / The goods arrived damaged on [date]. I notified you on [date] and requested a replacement or refund. You have not responded to my requests.]
Amount claimed
I am claiming £[amount], comprising [break down the claim: the unpaid balance of £[amount] / the deposit paid of £[amount] / the cost of replacement goods of £[amount]].[If claiming interest: I am also entitled to claim interest at 8 percent per year under Section 69 of the County Courts Act 1984 / under the Late Payment of Commercial Debts Act 1998. Interest has accrued at a daily rate of £[amount] from [date] to the date of this letter, currently totalling £[amount].]
Legal basis
[Describe why you are entitled to the money. Examples: This claim arises from your breach of our contract dated [date]. / The goods supplied did not conform to contract under the Consumer Rights Act 2015, as they were not of satisfactory quality and not fit for purpose. / You have been unjustly enriched by retaining a deposit for a service that was cancelled by you.]
What I require
I require payment of £[total amount including interest] within 14 days of the date of this letter, by bank transfer to [your bank details] / by cheque made payable to [your name].
If I do not receive payment within this time, I will issue proceedings in the County Court without further notice. If judgment is obtained against you, this may result in a County Court Judgment being registered against your name or company, which may affect your ability to obtain credit.
I attach [list any supporting documents: a copy of our contract / copies of the relevant correspondence / a copy of the invoice / photographs of the damaged goods].
Yours sincerely,
[Your name]
[Signature]
If They Ignore the Letter: Filing Your Claim
If the deadline in your letter before action passes without payment or a satisfactory response, file your claim. For most money claims of £10,000 or less, you can do this online at gov.uk/make-court-claim-for-money using either the Money Claim Online service or the newer Civil Money Claims service. Both allow you to file and manage your claim digitally. For claims that cannot be filed online (such as those involving more than two defendants, defendants outside England and Wales, or unspecified amounts), use the paper Form N1, downloadable from GOV.UK.
The Court Fee
Court fees are calculated based on the amount of your claim and are payable when you file. Current fees for claims on the small claims track run from £35 for claims up to £300, rising to £455 for claims between £5,000 and £10,000. If you win, the court orders the defendant to reimburse your court fee on top of the claim amount. If you are on a low income, apply for help with fees using form EX160.
The Particulars of Claim
When you file, whether online or on Form N1, you must include a Particulars of Claim. This is a brief statement of why you are owed the money. It does not need to be long, but it must cover: who you are and who you are claiming against, what happened, why the defendant is liable, and the amount you are claiming including interest. Keep it factual and avoid emotional language. The particulars are what the court and the defendant will use to understand your case.
Example particulars of claim: The Claimant entered into a contract with the Defendant on [date] for the supply of [goods/services] at a price of £[amount]. The Defendant failed to [deliver the goods / complete the work / provide the service] in accordance with the contract. Despite requests made on [dates], the Defendant has not remedied the breach or returned the sum paid. The Claimant claims £[amount] as a debt / damages for breach of contract, plus interest at 8% per annum from [date] pursuant to Section 69 of the County Courts Act 1984.
Mandatory Mediation Since May 2024
From May 2024, mediation is no longer optional for money claims of £10,000 or less. If the defendant files a defence, both parties must attend a free one-hour telephone mediation session arranged by the court’s Small Claims Mediation Service before the case can proceed to a hearing. The court arranges the session, usually within 28 days of both parties returning their directions questionnaires. Many cases settle at this stage. Mediation is conducted by a court-appointed mediator and is confidential.
Default Judgment
If the defendant does not respond to your claim within 14 days (or 28 days if they acknowledge service), you can apply for a default judgment. This is a court order for the full amount you claimed, without any hearing. You apply online and the judgment is usually issued within a few days. A default judgment is often the fastest resolution for straightforward unpaid debt claims.
If You Win: Enforcing the Judgment
Winning in court and getting paid are two different things. If the defendant does not pay after judgment, you need to enforce it. Options include a warrant of control, which allows court-authorised enforcement agents to seize the defendant’s goods, an attachment of earnings order if they are employed, or a charging order on their property if they own one. Enforcement carries additional fees but these are also recoverable from the defendant if enforcement succeeds.
Getting Help
Free guidance on the small claims process is available from Citizens Advice . If you want help drafting a letter before action that is precisely worded, references the correct legal basis and gives the other side the clearest possible opportunity to settle before court, the team at LetterLab can help you get it right. A well-written letter before action resolves most small claims disputes before any court involvement is needed.
Quick Reference: Key Facts
The small claims track covers money claims up to £10,000 in England and Wales
Personal injury and housing disrepair claims have a lower limit of £1,000
Always send a letter before action giving the other side a deadline to pay before filing
Court fees range from £35 to £455 depending on the claim amount, and are recoverable if you win
File online at gov.uk/make-court-claim-for-money using Money Claim Online or Civil Money Claims
From May 2024, both sides must attend free mandatory telephone mediation before any hearing
If the defendant does not respond within 14 days, apply for a default judgment
You can claim interest at 8 percent per year under Section 69 of the County Courts Act 1984
You do not need a solicitor for small claims proceedings
If you win, the defendant pays your court fee and any interest awarded in addition to the amount claimed
The Key Takeaway: Write the Letter First, File if Ignored
Most small claims disputes never reach a hearing. They settle because the other side receives a clear, professional letter before action and decides it is easier to pay than to defend a court claim. That letter costs you nothing but time. The court fee, if you do need to file, starts at £35 and comes back to you if you win.
Write the letter. Give a firm deadline. Send it by email or recorded post. If they ignore it, file online. The process is designed to be used without a solicitor and it works.
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