Small Claims Court Fee Calculator

1. Pre-Action Protocol: The Letter Before Action

Before you issue a claim at court, you must send a formal Letter Before Action (LBA) to the defendant. The courts expect both parties to attempt to resolve disputes without litigation, and failure to follow pre-action protocols can result in cost penalties even if you ultimately win your case. The court may refuse to award you costs or make an adverse costs order against you for not attempting to settle.

A compliant LBA for money claims should include: a clear statement of the basis of the claim (breach of contract, negligence, etc.), the exact amount claimed including any interest accrued to date, a deadline for payment or a substantive response (typically 14 days for individuals, 14–30 days for businesses), details of evidence supporting your claim, and a statement that court proceedings will follow if no adequate response is received.

Send the LBA by recorded delivery and keep a copy. The date of the LBA starts the clock for the defendant's response period and is evidence of compliance with pre-action conduct. For business-to-business debts, the Late Payment of Commercial Debts (Interest) Act 1998 entitles you to claim interest at 8% above the Bank of England base rate from the date the debt became overdue — which you should state clearly in the LBA.

2. Money Claim Online (MCOL): Filing Your Claim Digitally

Money Claim Online (MCOL) is HMCTS's digital portal for issuing County Court claims for money in England and Wales. You can use MCOL if your claim is for a specified sum of money only (not goods, services or injunctions), the defendant lives in England or Wales, and you are issuing as an individual or company. MCOL is faster than paper claims and tracks the case online. The court fee is the same as paper filing.

The process on MCOL: (1) Register and create an account; (2) Enter defendant details and particularise your claim (you have 1,080 characters — be concise but include all key facts: what was owed, when it became due, any partial payments); (3) Pay the court fee online; (4) The claim is issued and served on the defendant electronically or by first-class post; (5) The defendant has 14 days to acknowledge and 28 days from service to file a defence or part-admission.

If the defendant does not respond within the deadline, you can apply for default judgment online immediately. This is a judgment without a hearing — you win automatically. For claims where the defendant admits they owe money but cannot pay immediately, the court sets a payment plan. For disputed claims, the case is transferred to your local County Court for allocation to the small claims track and a hearing date is set.

3. Statutory Interest at 8%: How to Calculate Your Entitlement

Under Section 69 of the County Courts Act 1984, you are entitled to claim interest on a debt at 8% per annum simple interest from the date the debt became due to the date of issue of proceedings (or to the date of payment if earlier). This interest is then included in your claim total and the relevant court fee is based on the total including interest.

The formula is: Interest = (Claim Amount × 8% ÷ 365) × Number of Days Overdue. For example, a £5,000 debt that has been overdue for 180 days: Interest = (£5,000 × 0.08 ÷ 365) × 180 = £197.26. Your total claim becomes £5,197.26 and the court fee is based on this amount (£455 for claims £5,000.01–£10,000).

For business-to-business debts, the Late Payment of Commercial Debts (Interest) Act 1998 provides a higher statutory interest rate of 8% above the Bank of England base rate. With the base rate at 4.5% in March 2026, this means 12.5% per annum for B2B debts. You can also claim a fixed compensation amount: £40 for debts under £1,000, £70 for debts £1,000–£9,999, and £100 for debts of £10,000 or more. This B2B interest applies automatically — you do not need a contractual provision for it.

4. The Small Claims Hearing: What to Expect

Small claims hearings are designed to be accessible without legal representation. They take place at your local County Court and are conducted by a District Judge in a relatively informal setting — often a small hearing room rather than a formal courtroom. Hearings typically last 1–3 hours for most small claims. You should arrive at least 20 minutes early, bring multiple copies of all documentary evidence, and be prepared to speak calmly and clearly.

Key documents to bring: (1) A chronological bundle of all relevant evidence — contracts, invoices, emails, receipts, photographs, receipts for any losses; (2) A written witness statement (you can bring witnesses — up to 2 are usual); (3) A schedule of losses (itemising your claim clearly); (4) Copies of the Letter Before Action and any response. Serve copies of all documents on the other party at least 14 days before the hearing — failure to do so may result in evidence being excluded.

The judge will hear both parties, ask questions, and usually give a decision at the end of the hearing — though for complex cases, judgment may be reserved and given in writing later. The decision is a binding County Court judgment. You should be aware that even with a judgment in your favour, you may need to enforce it separately if the defendant does not pay voluntarily.

5. Enforcement Options: Collecting What You're Owed

A judgment is only as valuable as your ability to enforce it. If the defendant does not pay voluntarily after judgment, you have several enforcement tools, each with associated costs:

Warrant of Control (court fee £110): An enforcement agent (formerly bailiff) attends the debtor's home or business to seize goods and sell them to satisfy the debt. Most effective where the debtor has tangible assets. The enforcement agent also charges a compliance stage fee (£75) and an enforcement stage fee (7.5% of the value enforced, plus fixed fees).

Attachment of Earnings Order (£110): Deductions are made directly from the debtor's employer payroll before the debtor receives their wages. Highly effective for debtors in regular employment. The court sets a protected earnings rate to ensure the debtor retains a minimum income.

Third-Party Debt Order (£119): Freezes money in the debtor's bank account. Particularly effective where you know the debtor has funds available. The bank is served with the order and must freeze the relevant amount.

Charging Order (£119): Secures your judgment debt against property owned by the debtor. The charge is registered at the Land Registry. When the property is sold, your debt is paid from the proceeds — but this is a long-term solution only. You must then apply for an Order for Sale to force a sale, which courts rarely grant for small residential debts.

6. Mediation: Settling Before the Hearing

The Small Claims Mediation Service, offered free by HMCTS, allows both parties to attempt to settle a dispute with the assistance of an independent mediator by telephone. It is available once a defence has been filed and before the hearing. Mediation typically lasts about an hour and takes place at a mutually convenient time by phone. Over 60% of small claims mediation sessions result in a settlement.

The advantages of settling via mediation are significant: you avoid the uncertainty of a hearing outcome; you avoid travel costs and lost working time; the settlement can be on your own terms rather than what a court might order; and the settlement is immediate. A successful mediation results in a Tomlin Order or a consent judgment, both of which are binding.

Courts have been increasingly pro-active in directing parties to mediation. From 2024, the Civil Justice Council has been consulting on making mediation mandatory before small claims hearings — a change that would require defendants to engage with the process or face cost consequences. Always engage genuinely with mediation offers, as refusing without good reason can be reflected in the judge's costs order at trial.

7. Counterclaims: When the Defendant Sues Back

A defendant who believes they have a cross-claim against you can file a counterclaim — essentially a claim in the same proceedings running the opposite direction. For example, if you sue a contractor for shoddy work and they counterclaim for unpaid invoices, the court will hear both claims together. Counterclaims must be pleaded at the time of filing the defence (within 28 days of service of the particulars of claim).

If the counterclaim exceeds the small claims limit (£10,000), the entire case may be allocated to a higher track — the fast track or multi-track — which has different costs rules and significantly higher stakes. In fast-track cases, the losing party typically pays the winning party's legal costs, which can amount to many times the original claim value. Always take legal advice if you receive a substantial counterclaim.

Strategically, a well-founded counterclaim gives the defendant significant leverage in settlement negotiations. As a claimant, be prepared for the possibility of a counterclaim and ensure your claim is well-documented. If the defendant's counterclaim is substantially stronger than your own claim, settlement is often preferable to the risk of losing both the claim and the counterclaim at trial.

8. When NOT to Use the Small Claims Court

The small claims track is not always the best route to recovering money. Consider alternatives first: (1) Ombudsman schemes — for financial services, energy, telecoms, travel and retail disputes, free ombudsman services often resolve complaints more quickly than court and can award higher amounts; (2) Chargeback — for credit card purchases under Section 75 of the Consumer Credit Act, your card issuer is jointly liable with the merchant for goods over £100; (3) Trading Standards or Citizens Advice — for trader disputes involving criminal offences (e.g. fraud).

Court action may be counter-productive where: the defendant has no assets or income and cannot pay (a "man of straw" — you win nothing and spend on enforcement); the claim is close to but below a financially significant threshold (e.g. a £9,800 claim where the defendant may counterclaim, pushing the case to the fast track with cost risk); or the relationship with the defendant matters (e.g. a key supplier) — litigation permanently damages commercial relationships.