First: which set of rules applies to you
This is the question that decides everything else in the letter, and it is the one almost every online template skips. There are two regimes, and which applies turns on what the debtor is, not on the size or the age of the debt.
Who owes you the money?
An individual, or a sole trader
Pre-Action Protocol for Debt Claims
- 30 days to respond, from the date on your letter
- Must enclose an up-to-date statement of account
- Must enclose the Information Sheet and Reply Form
- Must enclose a Financial Statement form
A limited company, LLP or partnership
Practice Direction on Pre-Action Conduct
- No fixed period — 14 days is normally reasonable
- No prescribed enclosures
- No Reply Form, no Financial Statement
- Still set out the claim clearly and consider settlement
What the letter has to say
There is no prescribed form of words and no official template. What matters is that the debtor can understand what is claimed, why, and what happens if they do nothing. For a claim against an individual, paragraph 3.1 of the Protocol sets out the required contents in detail, the amount, whether interest is still accruing, how the debt arose, how it can be paid, and the address for the Reply Form.
For a claim against a company, the Practice Direction is far lighter. In practice a letter that does the following is enough, and doing more costs you nothing but time.
A compliant letter, either route
- Who you are, and who you say owes the money.
- The amount claimed, broken down — principal, interest, and any charges.
- The basis of the debt: the contract, invoice numbers and dates, or how an oral agreement was made.
- Whether interest is continuing to run, and at what rate.
- How to pay, and how to get in touch to discuss payment.
- A deadline — 30 days for an individual, normally 14 for a company.
- What happens next if they do not respond: that you will issue proceedings and seek interest and costs.
- An invitation to say why they dispute the debt, if they do. Ignoring a stated dispute and issuing anyway is what gets creditors punished on costs.
A worked example
This is the shape of a letter to a limited company, the lighter of the two routes. Everything in square brackets is yours to fill in. The notes in the margin explain why each part is there, which is the bit a downloaded template never tells you.
Letter before action — corporate debtor
Specimen
[Your company name and address]
Creditor
[Date]
Date it and send it the same day
FAO The Directors
Not a named individual, they change
[Debtor company name]
Exact registered name
[Registered office address]
From Companies House, not the invoice
Dear Sirs
LETTER BEFORE ACTION
Outstanding sum: £[amount]
The headline figure
We refer to invoice number [number] dated [date] in the
The basis of the debt
sum of £[amount], issued under [contract / purchase
order / our agreement of [date]]. Payment fell due on
[date] and remains outstanding in full.
Interest continues to accrue at [rate] under [the Late
State it or you cannot claim it
Payment of Commercial Debts (Interest) Act 1998 /
clause [x] of the contract], currently £[amount].
Unless payment of £[total] is received within 14 days of
The deadline — 14 days for a company
the date of this letter, we will issue proceedings
without further notice and will seek interest, court
fees and costs.
What happens next
If you dispute this debt, please set out the basis of
This line protects you on costs
your dispute in writing within the same period. We are
willing to consider a proposal for payment.
Payment may be made to [bank details].
How to pay
Yours faithfully
[Name and position]
How long you have to wait
Day 0
Letter dated and sent
The clock runs from the date on the letter, not the date it arrives. Date it and post it the same day or you are giving away part of your own notice period.
Day 14
Company deadline
For a corporate debtor, 14 days is normally treated as reasonable for a straightforward debt. Complex or disputed claims may need longer.
Day 30
Individual deadline
For an individual or sole trader the Protocol requires 30 days, and you should allow for a reply posted toward the end of that window.
After the deadline
Issue, or reconsider
If there is no reply you may issue. If there is a reply raising a genuine dispute or offering payment, deal with it — issuing regardless is what exposes you on costs.
What if they ignore it?
Most debts settle at this stage, which is why the letter is worth doing properly. Where it is ignored, the route depends again on what the debtor is.
- 01Any debtor
County court claim
The standard route for most debts. Fees are fixed and scale with the amount claimed; both the court fee and a contribution to your legal costs are usually recoverable from the debtor.
- 02Undisputed debts
Statutory demand
A formal demand that can lead to bankruptcy or winding-up. Powerful against a solvent debtor who simply will not pay, and the wrong tool entirely where the debt is genuinely disputed.
- 03After judgment
Enforcement of a judgment
A judgment is not payment. Warrant of execution, charging order, attachment of earnings or a third-party debt order — each suited to a different kind of debtor.
- 04Sometimes the answer
Or advice to stop
If the debtor has no assets and no income, a judgment is an expensive piece of paper. I will tell you that before you spend money on it.
What it costs
- Letter before action, drafted and served
- £75
- Debt more than 180 days overdue
- +5%
- County court claim, £1,000–£3,000
- £215
- Statutory demand, individual
- £250
- Statutory demand, company
- £350
- Charging order
- £295
Plus 15% of sums recovered
Added to the success fee
Fixed, plus court fee
Fixed
Fixed
Fixed, plus disbursements
All figures include VAT. Disbursements and court fees are additional; court fees are set by HMCTS. Both the court fee and fixed costs are normally recoverable from the debtor if you succeed.
The 15% is charged only on what is actually collected. The £75 introduction fee is payable whether or not the debt is recovered — I would rather state that plainly than describe the arrangement as risk-free and leave you to find the exception in the small print.
Common questions
Is a letter before action a legal requirement?
Effectively, yes. It is not a statutory obligation, but the courts expect it. If you issue without one, the court can stay the proceedings while you take the missing steps and can order costs against you, including in a claim you go on to win.
How long do I have to give them?
30 days if the debtor is an individual or a sole trader, because the Pre-Action Protocol for Debt Claims applies. For a limited company, LLP or partnership there is no fixed period and 14 days is normally reasonable for a straightforward debt.
Is there an official letter before action template?
No. There is no prescribed form of words. What matters is content: the amount, the basis of the debt, whether interest is running, how to pay, a deadline, and what will happen if they do not respond. Where the debtor is an individual, the Protocol also requires three specific enclosures.
Can I send it by email?
To a company, yes. To an individual the Protocol expects post as the default — you may also email if you hold an address, but only use email alone where the debtor has explicitly asked not to receive post and given you alternative details.
What if they reply and dispute the debt?
Deal with the dispute before issuing. Ask for the basis of it in writing, provide any documents they reasonably request, and consider whether the point has merit. Ignoring a stated dispute and issuing anyway is one of the quickest ways to lose your costs even in a claim you win.
Can I claim interest and my costs?
Usually. Commercial debts carry a statutory right to interest and fixed compensation under the Late Payment of Commercial Debts (Interest) Act 1998 unless the contract provides otherwise. Say so in the letter, a right you never mentioned is harder to insist on later.
Should I use a solicitor for this?
For a straightforward debt you can send the letter yourself, and this page tells you what it needs to contain. A solicitor's letter tends to be taken more seriously, and where the debtor is an individual the enclosures and timing requirements are easy to get wrong. I do it for £75.
This page states the law of England & Wales as at 18 August 2026. It is general information, not advice on your matter, and reading it does not create a solicitor-client relationship.