Small claims in England and Wales: a step-by-step guide

If a business or individual owes you money and won’t pay, or you’re in a dispute over faulty work or an unreturned deposit, the county court’s small claims track is designed to let ordinary people resolve it without a lawyer. This step-by-step guide covers England and Wales. Scotland has its own “simple procedure” and Northern Ireland has its own small claims process.

What is the small claims track?

There isn’t a separate “small claims court”. Claims are made in the county court and then allocated to a “track” depending on their value and complexity. The small claims track is the simplest, and in general it is used for claims worth up to £10,000. Lower limits apply to some types of claim, including personal injury claims and housing disrepair claims by tenants, so check the rules if your claim is one of those.

A big advantage is that costs are tightly limited. Even if you lose, you won’t normally have to pay the other side’s legal costs, although you may have to pay court fees and limited expenses, and the court can order costs against someone who behaves unreasonably.

Step 1: check it’s worth claiming

• Time limits: under the Limitation Act 1980, most claims for breach of contract or unpaid debts must be started within six years. Some claims have shorter limits.
• Can they pay? Winning a judgment is not the same as getting paid. If the other side has no money or assets, or a business has stopped trading, you may spend money for nothing.
• Is there a cheaper route? For complaints about financial firms, the free Financial Ombudsman Service may be better. Many sectors also have their own ombudsman or ADR scheme.

Step 2: try to settle and send a letter before claim

The courts expect you to try to resolve things before issuing a claim, and can penalise parties who don’t. Write to the other side setting out:

• who you are and what the claim is about;
• how much you are claiming and how you worked it out;
• copies of key documents; and
• a deadline to pay or respond, warning that you may start court proceedings without further notice if they don’t.

If you are a business claiming a debt from an individual, a specific pre-action protocol for debt claims applies, which requires particular information and a longer response period. Keep copies of everything you send and receive.

Step 3: issue the claim

Most straightforward money claims can be made online through the Make a money claim service on GOV.UK. You can’t claim online in some situations, for example where you don’t know how much to claim or you are claiming against three or more people or organisations; you can use paper form N1 instead. The GOV.UK guide to making a court claim for money sets out the options.

You pay a court fee, which depends on the amount claimed. If you are on a low income you may qualify for Help with Fees. You can usually add the fee to your claim, and you may also be able to claim interest. Describe the claim clearly and concisely: what was agreed, what went wrong, and what you want.

Step 4: the defendant responds

Once the claim is served, the defendant has a short period to respond: generally 14 days, or 28 days if they first file an acknowledgment of service. They can pay, admit all or part of the claim, or defend it, and they may make a counterclaim against you. If they don’t respond at all, you can usually ask the court for judgment “in default”.

Step 5: mediation and directions

If the claim is defended, both sides fill in a directions questionnaire. For many lower-value money claims, the court will now refer you to a free telephone mediation appointment with the Small Claims Mediation Service before any hearing. Mediation is confidential, and if you reach an agreement it is binding, so you avoid the stress of a hearing.

If there’s no settlement, the court sends directions telling you what to do before the hearing, such as sending copies of documents and witness statements by a set date. Follow them carefully and keep to the deadlines.

Step 6: the hearing

Small claims hearings are relatively informal and are often held in a judge’s room rather than a courtroom. Some take place by phone or video, and some are decided on the papers. You can represent yourself, and the judge will help keep things on track. Prepare a short, organised bundle of your documents, a timeline and a list of the points you need to make. Answer questions directly and stay polite.

You will usually get a decision on the day. If you think the judge made a mistake, there are strict time limits for appealing; GOV.UK says you must appeal within 21 days of the decision.

Step 7: getting paid

If you win and the other side doesn’t pay, the judgment is normally recorded on the Register of Judgments, Orders and Fines, which can affect their credit rating. You can then ask the court to enforce it. Options include enforcement agents (bailiffs), an attachment of earnings order (deductions from wages), a third-party debt order (money taken from a bank account) or a charging order on property. Each has its own fee, and the right choice depends on what you know about the other side’s finances.

Where to get help

• GOV.UK: make a court claim for money
• Citizens Advice
• Advicenow
• Your home insurance may include legal expenses cover, so it’s worth checking your policy.

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