Take a customer to the small claims court for an unpaid invoice

In England and Wales you make a county court claim for money. It becomes a small claim when the court puts it on the small claims track. Scotland and Northern Ireland have their own courts.

Decide whether a claim is worth making

Court fees and your own time come out of what you recover. Do not start a claim when:

• you cannot prove the debt with the contract or order, proof of delivery or completion, and the invoice
• the customer disputes the work and you cannot answer the complaint with evidence
• the customer has stopped trading or is insolvent, which you can check on Companies House
• the issue fee, a possible hearing fee and enforcement fees come to more than you are likely to recover
• the time limit for the claim has passed

In these cases a payment plan or a negotiated part-payment can leave you better off. If your customer is insolvent, company rescue and insolvency options and creditor priority show where an unpaid supplier stands.

Send a letter before action

The court expects you to write to the customer before you claim.

If your customer bought from you for its business, add statutory interest and the fixed recovery sum to the letter and to the claim. Late payment: your rights as a business explains how to work them out.

Make the claim

Claim online through the Make a money claim link on GOV.UK, or by post. You can claim online unless:

• you do not know how much you want to claim
• you are claiming on behalf of more than one person or organisation
• your claim is against 3 or more people or organisations
• you or the customer have no address in England or Wales
• your claim is against a government department

In those cases, post paper claim form N1 to the Civil National Business Centre with a cheque or postal order for the fee. Form N1 is also available in Welsh.

If the customer defends the claim

If the customer disputes the claim, the court may send you a questionnaire asking for more information. Returning it costs an extra court fee.

A defended claim that does not settle goes to a hearing. A judge hears small claims informally. You can represent yourself, pay a barrister or solicitor, or ask someone to advise you in court. You get the decision on the day.

Enforce the judgment

If the customer does not pay by the date on the judgment, you choose a route, complete its form and pay its fee.

Start by asking the court to order the customer to attend and give evidence of their income and spending. That shows which route is worth paying for. For a company, ask for a company officer to attend using form N316A.

If the customer is a company that cannot pay, you can ask the court to wind it up.

Where to get help

For help with a claim, contact the Civil National Business Centre. The contact details are on Make a court claim for money: make your claim on GOV.UK.

If a larger customer is not paying and you have already tried to resolve it, the Small Business Commissioner takes enquiries from small businesses. The service is free.