Money Claim Online: Your Guide to Recovering Unpaid Invoices

If you're a UK freelancer, sole trader, or small business owner, an unpaid invoice isn't just a cash flow problem — it's lost revenue that could affect your ability to operate. When a client refuses to pay or ignores your payment terms, making a money claim online unpaid invoice through the courts is often your most effective remedy. Unlike chasing payment with emails and phone calls, a formal claim gives you legal backing and the power to recover not just the invoice amount, but statutory interest and costs too.

This guide walks you through exactly how to claim unpaid invoice payments online in the UK, what you're entitled to recover, and when it's worth pursuing a claim rather than writing the debt off.

What Is a Money Claim Online?

A money claim online is a formal legal procedure through HM Courts & Tribunals Service that allows you to pursue a debtor for payment without hiring a solicitor. It's designed for straightforward claims — typically under £100,000 — and can be filed entirely online through the court's portal.

Unlike informal collection efforts, making a money claim online signals to the debtor that you're serious. It also creates a legally binding judgment if you win, which gives you enforcement options if they still refuse to pay.

The process is relatively affordable (court fees typically range from £25 to £455 depending on claim value) and doesn't require legal representation, making it accessible for small businesses and self-employed professionals.

Your Legal Rights: The Late Payment of Commercial Debts (Interest) Act 1998

Before diving into the claims process, it's crucial to understand what you're legally entitled to claim beyond the invoice amount itself.

Under the Late Payment of Commercial Debts (Interest) Act 1998, businesses have a statutory right to claim interest on unpaid invoices. This applies to most B2B transactions, though some exclusions exist (such as consumer debts or certain public sector contracts).

As of April 2026, the statutory interest rate is 12.50% — calculated as the Bank of England base rate (currently 4.50%) plus 8%. This rate compounds, meaning you're entitled to claim interest not just on the original invoice, but on accrued interest as well.

Beyond interest, you can also claim:

• Recovery costs — up to £40-70 depending on how far through the collection process you go
• Court fees — the cost of filing your claim is recoverable if you win
• Solicitor's costs — if you use one, though not always recoverable in full

This means if a client owes you £5,000 and hasn't paid for six months, you're not just claiming the £5,000 — you're also claiming statutory interest of around £312.50 (at 12.50% annually, pro-rata for six months), plus recovery costs and court fees.

When Should You Make a Money Claim Online?

Not every unpaid invoice warrants a court claim. Consider these factors:

Claim Size

Court fees scale with the amount claimed. For a £500 claim, you'll pay £70 in fees. For a £5,000 claim, you'll pay £155. For claims over £100,000, you'll need to use a different track and potentially use a solicitor. Generally, claims below £300 aren't economically worth pursuing unless the principle matters to you.

Dispute

Money claim online works best for straightforward debt collection. If the debtor disputes whether the work was completed, the invoice amount, or the terms of the contract, the claim may move to a different track requiring more involved procedures. You need clear documentation that the service was provided and the invoice was valid.

Debtor Details

You need to know where to serve the claim. If the debtor is a UK registered company or individual, this is straightforward. If they're abroad or you can't locate them, serving the claim becomes much harder.

Enforcement Ability

Even if you win, if the debtor has no assets or income, collecting can be difficult. Before claiming, do a quick check: do they appear to be operating a genuine business? Have they paid you on time previously (suggesting capability)? A judgment against someone with no visible assets may be unenforceable.

Step-by-Step: Making a Money Claim Online

Step 1: Gather Your Documentation

Before you file anything, compile:

• The original invoice (showing date, amount, payment terms)
• Proof of the work/service (emails, contracts, delivery confirmation, photos)
• Payment terms or contract excerpt mentioning payment date
• Proof of non-payment (email trails showing you've chased payment)
• Bank statement showing money wasn't received
• Any written communication from the debtor admitting the debt

Courts favour documentary evidence over your word alone. The stronger your paper trail, the less likely the debtor will contest the claim.

Step 2: Access the Court Claims Portal

Visit the HM Courts & Tribunals Service Money Claims Online portal (formerly MCOL). You'll need to create an account with username and password. The portal is designed to be user-friendly for non-lawyers.

Step 3: Enter the Claim Details

You'll provide:

• Claimant details (you)
• Defendant details (the debtor — company or individual)
• Claim amount (invoice + statutory interest + recovery costs)
• Reasons for the claim (describe what was owed, when, and why unpaid)
• Evidence summary (brief outline of documents supporting your claim)
• What you're claiming (break down invoice, interest, court fee, recovery costs)

Be precise with your interest calculation. Show your working. Courts expect you to apply the statutory interest formula correctly.

Step 4: Pay the Court Fee

Court fees range from £25 (claims under £300) to £455 (claims £100,000+). You'll pay by debit or credit card immediately after filing.

Step 5: Service of Claim

Once filed, the court serves the claim on the defendant electronically or by post, depending on the defendant type. The defendant then has 14 days to respond or make a payment.

Step 6: Await Response

The defendant can:

• Pay the full amount — the claim ends, you've won
• Dispute the claim — it progresses to the next stage
• Request more time to pay — you can agree or reject
• Do nothing — you can request judgment in default

In many cases, receiving a formal court claim is enough to prompt payment. Defendants realise the cost of contesting (and risk of losing) usually exceeds just paying up.

Step 7: Judgment and Enforcement

If you win (either because the defendant pays, doesn't respond, or loses at trial), you have a judgment. If the defendant still refuses to pay, you can enforce through:

• County court bailiff enforcement (seizure of goods)
• Attachment of earnings order (deduction from wages)
• Third-party debt order (freezing bank accounts)
• Charging order (against property, in some cases)

Enforcement can be costly and time-consuming, but the option's existence often motivates payment.

Interest and Costs: What You Can Actually Recover

This is where money claim online unpaid invoice becomes genuinely valuable. Let's work through a realistic example.

Scenario: You invoiced a client £8,000 on 1 February 2025. Payment was due 30 days later (1 March 2025). It's now 4 April 2026 — 13 months overdue. You're claiming in April 2026.

Statutory interest calculation:

• Invoice: £8,000
• Statutory interest rate: 12.50% per annum
• Days overdue: 400 days (from 1 March 2025 to 4 April 2026)
• Interest owed: £8,000 × 12.50% × (400/365) = approximately £1,096
• Recovery costs: £70 (assuming formal demand was made)
• Court fee for £9,000+ claim: £245
• Total claim: £9,411

Instead of recovering just £8,000, you recover £9,411. That extra £1,411 is the legal interest and costs you're entitled to. Many businesses don't realise this — they think a court claim only recovers the original invoice amount.

This is why late payment is so expensive for debtors and so worthwhile pursuing for creditors. The statutory interest compounds, especially for long-overdue invoices.

Common Mistakes to Avoid

Filing Without Documentation

Don't claim if you can't produce the invoice and proof of work. Courts need evidence, not your assertion.

Miscalculating Interest

Use the formula: (Invoice Amount × 12.50% × Days Overdue / 365). Double-check your maths. If you're out by more than a few pounds, the court will notice.

Suing the Wrong Entity

If you invoiced "ABC Ltd" but served a claim on "John Smith" (the director), the claim may be invalid. Always serve the entity you contracted with.

Waiting Too Long

You have six years to claim under the Limitation Act 1980, but the longer you wait, the harder it is to gather fresh evidence. Don't delay.

Ignoring Settlement Offers

If the defendant offers £7,500 to settle your £8,000 claim before judgment, consider it seriously. Getting 94% of what you're owed in weeks is often better than pursuing a judgment that may take months and might be difficult to enforce.

Frequently Asked Questions

Can I claim for money if I don't have a formal invoice?

It's much harder. Courts prefer documentation showing the agreed amount, service delivery, and payment terms. If you only have email correspondence, that can work — but it's weaker. Always issue formal invoices.

What if the client disputes the quality of work?

If they claim the work was defective or incomplete, your straightforward money claim online becomes disputed. It may move to small claims track with a hearing. If quality is genuinely in question, settlement is often smarter than fighting.

How long does the whole process take?

If the defendant doesn't respond or pays immediately: 2-4 weeks. If disputed and goes to hearing: 3-6 months. If you need to enforce: add another 2-3 months.

Can I claim legal costs?

Court fees are recoverable if you win. Solicitor's costs are partially recoverable in default judgments but rarely recovered in full in straightforward small claims. This is why many small businesses handle claims themselves.

What if they're based abroad?

Serving a claim abroad is complicated and expensive. UK courts have limited jurisdiction. You may need to claim in their jurisdiction instead. Weigh whether it's worth the expense.

The Bottom Line

An unpaid invoice doesn't have to be a loss. Making a money claim online unpaid invoice is a practical, affordable route to recovery that gives you legal backing and often motivates quick settlement. With the statutory interest rate at 12.50% annually, long-overdue invoices become increasingly expensive for debtors — which works in your favour when you finally claim.

Document everything, calculate your interest correctly, and don't hesitate to use the court system. It's designed for exactly this situation, and UK law explicitly protects creditors through the Late Payment of Commercial Debts (Interest) Act.

The cost of inaction is far higher than the cost of claiming.