Small Claims Court for Unpaid Invoices UK: The Complete Step-by-Step Guide (2026)

You've sent the reminders. You've followed up. You've even sent a Letter Before Action. Your client still hasn't paid. Now what?

If you're owed less than £10,000, Small Claims Court is your next step — and it's far simpler than most people think. You don't need a solicitor. You don't need legal experience. You just need your evidence and about 30 minutes to file online.

This guide walks you through the entire process, from filing to enforcement, so you can recover what you're owed with confidence.

What Is Small Claims Court?

Small Claims Court isn't a separate court — it's a track within the County Court system in England and Wales. Claims under £10,000 are automatically allocated to the Small Claims Track, which is designed to be:

For unpaid invoices with clear documentation (a contract, the invoice, proof of delivery, and your chase emails), the process is straightforward and heavily weighted in the claimant's favour.

Before You File: The Pre-Action Checklist

Courts expect you to have made genuine attempts to resolve the dispute before filing. If you skip these steps, a judge may penalise you on costs — even if you win. Here's what you need:

1. A Letter Before Action (LBA)

Under the Pre-Action Protocol for Debt Claims, you must send a formal Letter Before Action and allow 30 days for the debtor to respond. Your LBA should include:

Keep proof that you sent it — email with read receipt, or recorded delivery post.

Don't have an LBA? Our free late payment calculator generates personalised chase emails including a formal Letter Before Action for £9.99.

2. Your Evidence File

Gather everything before you file. You'll need:

Step-by-Step: Filing a Small Claim for an Unpaid Invoice

Step 1: File Online via Money Claim Online

Go to moneyclaim.gov.uk — the official government portal for county court claims under £100,000. You'll need to create an account and fill in:

Tip for the particulars of claim: Keep it factual and concise. Something like:

"The Claimant supplied [services/goods] to the Defendant pursuant to [contract/agreement dated X]. Invoice [reference] for £[amount] was issued on [date] with payment due on [date]. Despite the Claimant's Letter Before Action dated [date], the debt remains unpaid. The Claimant claims the sum of £[amount] plus statutory interest of £[interest] under the Late Payment of Commercial Debts (Interest) Act 1998 and fixed compensation of £[compensation] under the same Act."

Step 2: Pay the Court Fee

Court fees depend on the amount you're claiming:

Claim AmountCourt Fee
Up to £300£35
£300.01 to £500£50
£500.01 to £1,000£70
£1,000.01 to £1,500£80
£1,500.01 to £3,000£115
£3,000.01 to £5,000£205
£5,000.01 to £10,000£455

Important: If you win, the court fee is added to the judgment — the debtor pays it, not you.

Step 3: The Defendant Responds (14 Days)

After you file, the court sends a claim pack to the defendant. They have 14 days to respond. Three things can happen:

  1. They pay. Excellent — claim settled. Many debtors pay at this stage because receiving court papers is a wake-up call.
  2. They don't respond. You apply for a default judgment — the court awards you the full amount without a hearing. This is the most common outcome for clear-cut unpaid invoice claims.
  3. They defend or dispute. The claim proceeds to a hearing (see Step 4).

Step 4: The Hearing (If Needed)

If the claim is defended, you'll get a hearing date — usually within 2-3 months. Small Claims hearings are informal:

For unpaid invoice claims with good documentation, the outcome is almost always in the claimant's favour. The debtor would need to prove they had a genuine reason not to pay — that the work wasn't delivered, was defective, or that no contract existed.

Step 5: After Judgment — Getting Paid

Winning a judgment doesn't automatically put money in your account. If the debtor still doesn't pay after the judgment, you have several enforcement options:

Most importantly, a County Court Judgment (CCJ) stays on the debtor's credit file for 6 years. This is devastating for businesses — it can prevent them from getting credit, mortgages, and business loans. This alone is often enough to prompt payment.

How Much Can You Claim?

You can claim more than just the original invoice amount. Your total claim should include:

  1. The unpaid invoice amount
  2. Statutory interest at 11.75% per annum (8% + BoE base rate of 3.75%) — accruing daily from the day after payment was due
  3. Fixed compensation — £40, £70, or £100 depending on the debt amount
  4. Court fee — added to the judgment if you win

For example, a £3,000 invoice that's 90 days overdue:

Use our free calculator to work out the exact interest and compensation on your invoice.

What If They're in Scotland?

Scotland has its own system. For debts under £5,000, you use the Simple Procedure at the Sheriff Court. The process is similar but uses different forms and terminology. For debts between £5,000 and £100,000, use the Ordinary Cause procedure.

What If They're a Limited Company That's Dissolved or Insolvent?

If the debtor company has been dissolved, you may be able to apply to have it restored to the Companies House register in order to pursue your claim. If the company is insolvent (in administration or liquidation), you'd need to submit your claim to the insolvency practitioner handling the case. In these situations, professional legal advice is recommended.

Common Questions About Small Claims for Unpaid Invoices

Can I claim if I don't have a written contract?

Yes. A verbal agreement is still a legally binding contract. Email exchanges, text messages, and evidence of the work being delivered all count. The Late Payment Act applies to all B2B transactions regardless of whether there's a formal written contract.

What if the debtor says the work was poor quality?

This is a common defence tactic. If they never complained during or after the work, and especially if they accepted delivery without objection, this defence rarely succeeds. Any complaints made only after you started chasing for payment tend to be viewed sceptically by judges.

How long do I have to file a claim?

Under the Limitation Act 1980, you have 6 years from the date payment was due to file a claim in England and Wales (5 years in Scotland). Don't wait that long — evidence gets weaker and interest stops being a meaningful motivator after a while.

Can I claim for multiple unpaid invoices from the same client?

Yes. You can combine multiple invoices into a single claim, as long as the total is under £10,000 for the Small Claims Track. Each invoice attracts its own fixed compensation payment.

What if they offer to pay in instalments?

If the debtor offers a repayment plan before or during proceedings, consider it seriously — especially if the alternative is chasing an empty bank account. Get any agreement in writing with specific dates and amounts. If they default on the plan, you can enforce the full judgment.

The Bottom Line

Small Claims Court exists specifically to help people like you recover money you're owed. The process is designed to be accessible, affordable, and effective. Most unpaid invoice claims never reach a hearing — the debtor pays once they receive court papers because the consequences of a CCJ are too severe to risk.

The key steps: calculate what you're owed, send a Letter Before Action, wait 30 days, then file online. The entire filing process takes about 30 minutes. The most important thing is to not let embarrassment or intimidation stop you from claiming what's legally yours.

Start by calculating exactly what you're owed — including statutory interest and compensation that most people don't know they can claim.