The following information details the fixed fees applicable for business to business debt that is undisputed.
Court Claims
It is hard to provide an accurate estimate of costs without knowing the factual basis of the debt and the grounds upon which it is claimed. This estimate of 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.
| Debt Value | Our fee |
|---|---|
| Letter before action (simple debt claim) | Fixed fee of £250 plus VAT and disbursements |
| up to £5000 | Fixed fee of £1,250 plus VAT and disbursements |
| £5,000.01 to £10,000 | Fixed fee of £2,000 plus VAT and disbursements |
| £10,000.01 to £100,000 | Hourly rate of £295 plus VAT and disbursements, typically overall costs can be between £7,500.00 - £12,500.00 plus VAT and disbursements |
| £100,000.01 and over | Hourly rate of £295 plus VAT and disbursements, typically overall costs can be between £10,000.00 - £15,000.00 plus VAT and disbursements |
VAT is charged at the applicable rate from time-to-time, currently at 20%.
The above fees include all work to obtain a decision from the Court, settlement or payment of the debt. In each case the Letter before action will be paid for in addition to the fixed fee for litigation.
For example, if you have an uncontested unpaid invoice for £6,000 our fee will be £2,250 plus VAT and disbursements made up of a fixed fee of £250 plus VAT for the Letter Before Action and £2,000 plus VAT for the fixed fee for a debt of this value. Disbursements will apply as set out on this page too.
Where an invoice becomes disputed we will agree a new scope and cost of work with you that will be based upon the firm's hourly rates which range between £195 plus VAT and £300 plus VAT depending upon the experience of your litigator.
Disbursements
Disbursements for claims of this type typically include court fees which vary based on the value of the claim and any applications to be made. Court fees can be found here.
A summary of the court fee to start the claim is set out below:
| Value of your claim | Fee |
|---|---|
| Up to £300 | £35 |
| More than £300 but no more than £500 | £50 |
| More than £500 but no more than £1000 | £70 |
| More than £1000 but no more than £1500 | £80 |
| More than £1500 but no more than £3000 | £115 |
| More than £3000 but no more than £5000 | £205 |
| More than £5000 but no more than £10,000 | £455 |
| More than £10,000 but no more than £200,000 | 5% of the value of the claim |
| More than £200,000 | £10,000 |
These fees are correct as of January 2025. Please check here to confirm the current costs.
You would also typically expect to incur barrister’s fees which vary on a case by case basis but can range from £1,000.00 to £10,000.00 and in most cases barrister's fees will attract VAT at 20%.
All of our professional service fees attract VAT at a rate of 20%. You would not be expected to pay VAT on court fees, however, you would ordinarily be expected to pay VAT at the same rate on barrister’s fees and any other disbursements that might be required, for example Land Registry fees. It is difficult to set out a comprehensive list of disbursements that might be required and your lawyer will talk to you about these at the outset of your case. Any disbursements that might be required will be set out within our letter of engagement and include an estimate of how much these might be.
Experience and qualifications
Our debt recovery work is carried out by James Leighton, Managing Director who was admitted as a Solicitor in 2017. All debt recovery work is supervised by Sarah Rowland, CEO and Solicitor.
Anyone wishing to proceed with a claim should note that:
- The VAT element of our fee cannot be reclaimed from your debtor.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
Our fee includes:
- Taking your instructions and reviewing 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 Acknowledgement of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default in received, write to the other side to request payment
- If payment is not received within 14 days, providing you with advice on next steps and likely costs
Matters usually take 4-6 weeks from receipt of instructions from you to receive 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 Judgement in default. If enforcement action is needed, the matter will take longer to resolve and additional costs may be involved.
Recoverability of costs
The general rule in relation to costs is “Costs in the Case”. That is, the losing party pays the winning party’s costs in bringing the action.
However, if the debt claimed is under £10,000.00, the matter will most likely be allocated to the small-claims track. Under the small claims track, the Court will generally allow the successful party to recover limited costs such as the court fee and witness expenses. Any other legal costs incurred will not be recoverable from the other side.
Fast Track is reserved for claims between £10,000.00 - £25,000.00. The hearing can only last for 1 day, and usually, it takes up to a year to reach it.
Multi Track is for claims that surpass £25,000.00. Usually, more than 1 day is allowed for a hearing, but depending on the complexity of the whole case, it can take anywhere between 1 and 2 years to reach a hearing.
For both the fast and multi-track, costs are assessed by the court and are usually awarded to the winning party and are not restricted as they are in the small-claims track. As a general rule of thumb, you should recover 65–70 per cent of your legal costs from the other side, if you are successful.
How can I increase the likelihood and amount of costs awarded to me?
As with all litigation, there are tactical and practical steps you can take which may improve your position. With costs, these generally take the form of without prejudice settlement offers, specifically offers made under Part 36 of the Civil Procedure Rules, and partaking in other Alternative Dispute Resolution options.
One of our litigation solicitors will be well placed to advise you in regards to the best timing and course of action to take to protect your position as to costs and maximise your costs recovery, as well as maintaining a tactical edge and control over the litigation.
We know our fees are competitive in relation to the service we provide. However, if you have received a lower quotation from a local reputable firm then please do not hesitate to get in contact with us and we will endeavour to match it.
