If polite reminders have failed, the small claims process can be a practical way for a sole trader to recover an unpaid invoice. This guide covers the general steps in England and Wales; Scotland and Northern Ireland have their own procedures. Court fees and rules change, so check current information on GOV.UK and consider getting advice before you start.
Step by step
Check your evidence
Gather the quote, agreed terms, invoice, proof the work was done and all correspondence. Make sure the amount is correct and the debt is genuinely due. Weak or incomplete evidence can undermine your claim.
Send a formal letter before claim
Write a letter before claim setting out what is owed, why, and a deadline for payment, and say that you may start court proceedings. If the customer is an individual, a specific pre-action protocol for debt claims applies with set documents and a response period, so follow it carefully. For business customers, you can also claim statutory late payment interest where it applies.
Consider whether it is worth claiming
Think about whether the customer can pay, because a judgment does not guarantee payment. Weigh the court fees, your time and the amount owed. Mediation or a payment plan may be a better outcome.
Start the claim
In England and Wales, many money claims can be made online through the court service. Enter the details accurately, including the amount, interest and a brief explanation. Pay the court fee, which can usually be added to the claim.
Respond to the defence or judgment
If the customer does not respond, you can ask for judgment. If they defend, the court may offer mediation and then set a hearing. Prepare a clear bundle of evidence and a short timeline.
Enforce the judgment if needed
If the customer still does not pay after judgment, you can ask the court to use enforcement methods. Each has its own fee and chance of success. Get advice about which is most suitable.
Ready-to-use checklist
- Quote, terms, invoice and correspondence gathered
- Amount owed double-checked
- Letter before claim sent following the correct process
- Response period allowed
- Cost and likelihood of recovery weighed up
- Claim submitted with correct details
- Evidence bundle and timeline prepared
Practical tips
- Keep your tone professional in every letter, as the court may read them.
- Offer a payment plan where it is realistic; getting paid is the goal.
- Take deposits or stage payments on future jobs to reduce the risk.
Common problems
The customer says the work was faulty.
Consider whether the complaint has merit and whether putting it right would resolve things. If you disagree, keep evidence of the work quality for the court.
I do not know the customer's current address.
You need a valid address to serve the claim. Try to confirm it before starting, as claims sent to the wrong address can fail.
The customer is a limited company that has stopped trading.
Check Companies House for its status. If it is in insolvency, you may need to submit a claim to the insolvency practitioner instead.