Debt recovery costs and services

Court Claims

These costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one-off letter is required), or an hourly rate if more extensive work is needed.

Claim Amount Court Fee Our Fee Estimate (incl. VAT) Total
Up to £300 £35 £576 £611
£300.01 - £500 £50 £576 £625
£500.01 - £1,000 £70 £576 £646
£1,000.01 - £1,500 £80 £720 £800
£1,500.01 - £3,000 £115 £720 £835
£3,000.01 - £5,000 £205 £720 £925
£5,000.01 - £10,000 £455 £864 £1,319
£10,000.01 - £100,000 5% of the claim £1,440 Based on value of the claim
£100,000.01 - £200,000 5% of the claim Bespoke fees apply Based on value of the claim
Over £200,000 £10,000 Bespoke fees apply Based on value of the claim

*Please note that the Court fees are in accordance with those published in April 2023 and may be subject to change.

Anyone wishing to proceed with a claim should note that:

  • Court Fees are based on the amount you’re claiming plus any interest and fixed recoverable costs.

  • The VAT element of our fee cannot be reclaimed from your debtor.

  • Interest and fixed recoverable costs may take the debt into a higher banding, with a higher cost.

  • The costs quoted above are not for matters where the claim is defended or enforcement action, such as the bailiff, is needed to collect your debt.

  • Following the extension of the fixed recoverable costs regime, claims valued up to £100,000.00 following the 1st of October 2023 will be subject to predetermined amounts that the winning party can recover from the losing party. We will advise you separately as to these costs.

Our fee includes:

  • Taking your instructions and reviewing the documentation

  • Undertaking appropriate searches

  • Sending a letter before action

  • Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim

  • Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in default

  • When Judgment in default in received, write to the other side to request payment

  • If payment is not received within 30 days, providing you with advice on next steps and likely costs

Any non-fixed fee work will be charged at £240 per hour plus VAT.

Matters usually take 8-12 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgment in default and there is no delay in the court processing the issue of proceedings and service. If enforcement action is needed, the matter will take longer to resolve.

*VAT is charged at a rate of 20%

 

Late Payment of Commercial Debts

Where the debtor is a business, an additional fixed sum as set out below can be claimed for the cost of recovering a late commercial payment in addition to interest.

Amount of Debt Charge
Up to £999.99 Basic Rate of £40
£1000 to £9,999.99 Basic Rate of £70
£10,000 or more Basic Rate of £100
Fixed Recoverable costs for most claims up to £100,000 Basic Rate of £180

The interest rate for this is 8% in accordance with Late Payment of Commercial Debts (Interest) Act 1998 unless your contract specifies differently.

 

 

 

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