Unpaid for a job? When small claims is worth it — and how it works in the UK

You did the work, the invoice is overdue, and the replies have dried up. At some point the question becomes: is it worth taking them to court, or do you just swallow it?

For the sums most tradespeople deal in, small claims is built for exactly this — no solicitor needed — and the threat of it settles far more cases than ever reach a courtroom. But there are a couple of things to get right first, and the system isn't the same across the UK.

Start with the free step that settles most of it

Before any court, send a letter before claim (sometimes called a letter before action). It's a short, formal final notice: what's owed, for what, by when, and that you'll start court proceedings if it's not paid. Email it and post it, and keep a copy.

This one step recovers a surprising amount, because it's the moment the customer realises you're actually serious. Plenty of people who ignore three chasing texts pay up the day a formal letter lands — court is suddenly real, and so is the hassle and cost coming their way.

How long you give them is not a matter of taste. In England and Wales, if the person who owes you is an individual — and that includes a sole trader — you are under the Pre-Action Protocol for Debt Claims, and it is prescriptive. Thirty days to reply, not fourteen. An information sheet, a reply form and a financial statement form enclosed with the letter. Skip any of it and the court can penalise you on costs even when you win, or stay the claim until you have done it properly. If the debtor is a limited company the protocol does not apply, the general pre-action rules do, and 14 days is the usual reasonable period for a straightforward debt.

Scotland and Northern Ireland run their own systems and the protocol is not one of them — a clear written demand with a reasonable deadline is the practical equivalent. And if the dispute is a construction one, there may be a different protocol that takes precedence over both. When in doubt, 30 days and the forms costs you a fortnight; getting it wrong costs you the costs order.

You can add interest and compensation (on business debts)

If your customer is another business, the Late Payment of Commercial Debts rules let you add statutory interest — 8% above the Bank of England base rate — plus a fixed compensation sum per invoice (£40, £70 or £100 depending on the size). The late payment interest calculator works out both for a given invoice. You don't have to, and many won't on a customer they want repeat work from, but on a serial late-payer it's both fair and a useful bit of leverage to spell out in the letter.

(The law here is tightening, too: the government's new Commercial Payments Bill, introduced in 2026, brings in mandatory interest and tougher rules on late payment — the direction of travel is firmly that small businesses should get paid on time.)

If it goes to court — and how it differs by nation

This is where people get tripped up, because "small claims" isn't one UK-wide system:

• England & Wales: the small claims track handles claims up to £10,000, and you start most money claims online through Money Claim Online (MCOL).
• Scotland: you use Simple Procedure through the sheriff court, for claims up to £5,000.
• Northern Ireland: the small claims process covers claims up to £5,000.

In all of them there's a court fee to issue the claim (it scales with the amount, and you can usually add it to what you're claiming), and the process is designed to be used without a lawyer.

The pre-action step above is an England and Wales rule specifically. It attaches to who you are chasing rather than to which court you end up in, so check it before you send the letter, not after.

The mistake that ends it before it starts

Here's the one that catches good tradespeople out: you cannot take someone to court if you don't actually know who they are. A first name, a mobile number, and an email aren't enough — to issue a claim you need the person's (or company's) correct full name and an address to serve papers on. The classic trap is a job booked over the phone at a property they've just bought and don't yet live in: when it goes wrong, you've got a phone number and an empty house, and a phone number can't be served.

Which is why the real fix is upstream, at booking — capture a full name and a billing address before you travel, every time. It's the difference between a recoverable debt and a write-off.

So — is it worth it?

A rough rule:

• Small sum, no real records, unknown identity? Often not worth the time and the court fee. Chalk it up, and fix your booking step so the next one is recoverable.
• A few hundred pounds or more, you've got the paperwork, and you know who they are? Frequently worth it — and the letter before claim alone may well do the job without you ever filing.

The deciding factor is rarely the law. It's whether you set the job up so that chasing is possible: clear records, a known customer, a paper trail. Get that right and you'll rarely need the court — the credible threat of it is usually enough.

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This is general information, not legal advice — for a specific dispute, the Small Business Commissioner and Citizens Advice are good free starting points, and the exact court process is set out on GOV.UK (or mygov.scot in Scotland).