Before you can ask a court to make someone pay what they owe you, the court expects you to have already given them a fair, written chance to sort it out themselves. That's what a Letter Before Claim is for: a formal, factual demand that sets the record straight, states what you're owed, and gives a clear deadline before things escalate to a County Court claim.

Step 1: Understand why you need one

Before you can start a County Court claim through Money Claim Online, the court expects you to have first tried to resolve the dispute directly. This is set out in the Practice Direction on Pre-Action Conduct, and for straightforward debts owed by an individual or sole trader, more specifically in the Pre-Action Protocol for Debt Claims. Skipping this step isn't just bad practice: a judge can penalise you in costs later, even if you go on to win, if you never gave the other side a fair chance to pay or respond first.

Step 2: Confirm who you're writing to and what protocol applies

If the person who owes you money is an individual or a sole trader, the Debt Claims Protocol applies and sets out specific information you must include, such as a reply form and details of free debt advice. If the debtor is a limited company, the general Practice Direction on Pre-Action Conduct applies instead, which is less prescriptive but still expects clarity and a fair opportunity to respond. Either way, the core content of a good letter is the same: what's owed, why, and what happens next.

Step 3: Set out the facts clearly and chronologically

State who you are, what the agreement was, what was supplied or agreed, and where things went wrong: an unpaid invoice, an undelivered refund, a loan that was never repaid. Include dates, reference numbers, and amounts. This isn't the place for emotional language or vague accusations; it's a factual record that both the debtor and, later, a court can follow. Attach or reference the supporting documents you're relying on, such as the original invoice or contract.

Step 4: State the amount owed, including interest

Set out the principal sum clearly, and add any interest you're entitled to, either under a contract term or the statutory rate under the Late Payment of Commercial Debts Act (business-to-business) or Section 69 of the County Courts Act 1984 (most other claims). Show how the interest was calculated rather than just stating a total, so the figure is easy to verify. This is the same calculation you'll need again if the claim goes on to Money Claim Online, so getting it right now saves rework later.

Step 5: Give a clear deadline and explain the consequences

Under the Debt Claims Protocol, individuals and sole traders must be given at least 30 days to respond before you can start court proceedings; for other disputes, 14 days is a common and reasonable minimum. State the deadline explicitly, explain that you intend to issue a County Court claim if it passes without payment or a satisfactory response, and note that this could add court fees and interest to what they owe. Keep the tone firm and factual rather than threatening.

Step 6: Send it properly and keep proof

Send the letter by a method you can prove: email with a read receipt or delivery confirmation, or post using a tracked or signed-for service. Keep a copy of exactly what you sent and when. If the matter does end up in front of a judge, being able to show you sent a clear, compliant Letter Before Claim and gave a fair deadline is often as important as the underlying facts of the dispute.

Step 7: What happens after you send it

The debtor may pay in full, propose a payment plan, dispute the debt, or simply not respond. If they engage, it's usually worth trying to reach a reasonable agreement before going further; a settled dispute is faster and cheaper than a contested one. If the deadline passes with no response, or the debtor rejects the claim without a credible reason, you can proceed to Money Claim Online, referencing the Letter Before Claim as evidence that the pre-action process was followed.

A worked example

Say a client hasn't paid a £1,200 invoice for freelance work, now 60 days overdue. Your Letter Before Claim would state the agreement, the invoice date and number, the due date, the £1,200 principal, statutory interest accrued since the due date, and a 30-day deadline to pay in full. It would note that if payment isn't received or a response given within that window, you intend to issue a claim through Money Claim Online, which would add the court fee and further interest to the amount owed.

This guide is general information, not legal advice, and the specific requirements of the Pre-Action Protocol you need to follow depend on who owes you money and what kind of debt it is. LawClaims is a document preparation tool, not a law firm, and no solicitor-client relationship is formed by using it or reading this page. For anything beyond a straightforward claim, consider speaking to a solicitor or a free advice service such as Citizens Advice.

How to Write a Letter Before Claim (Letter Before Action) in the UK