The Procedure for Making Small Claims

What are small claims?

Small claims are a way of resolving disputes through the county court when other methods have failed. They are designed to handle relatively straightforward cases involving smaller sums of money, making court action more accessible to ordinary people without the need for expensive legal representation.

The types of disputes that commonly end up as small claims include faulty goods, poor quality workmanship, unpaid invoices, and disagreements over services that were not delivered as promised.

Cases are typically allocated to the small claims track if the value of the claim is £10,000 or less in England and Wales. Personal injury claims and housing disrepair cases have a lower threshold of £1,000. The exact limits and any recent changes can be checked on GOV.UK, as these figures are reviewed from time to time.

The process is intended to be simpler and less formal than other court tracks. Hearings are often conducted in a private room rather than a traditional courtroom, and judges will usually take a more active role in asking questions and guiding proceedings. Legal jargon is kept to a minimum where possible.

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Court action should be a last resort. Before starting a claim, you should make genuine attempts to resolve the matter directly with the other party. This means contacting them clearly, explaining the problem, and giving them a reasonable chance to put things right.

If initial conversations do not resolve the issue, send a formal letter before action. This should set out your complaint, what you want the other party to do, and a deadline for their response. Keep copies of all correspondence, as you may need to show the court later that you made proper efforts to settle the dispute without legal action.

If direct contact does not work, consider alternative dispute resolution. This covers various ways of settling disagreements without going to court. The main options include:

• Mediation, where a neutral third party helps both sides reach an agreement. The mediator does not make a decision for you but facilitates discussion.
• Arbitration, where an independent arbitrator reviews the evidence and makes a binding decision. Some trade associations run arbitration schemes for disputes involving their members.
• Ombudsman services, which exist for areas such as financial services, energy, telecommunications, and property. Ombudsman decisions are typically binding on the business if you accept the decision, but you are not obliged to accept and can still pursue court action.

Some businesses belong to trade bodies that offer their own dispute resolution schemes. It is worth checking whether the company you are dealing with is a member of any such organisation.

Citizens Advice can help you understand which options might apply to your situation. Their website has guidance on consumer rights and how to complain effectively. GOV.UK also provides information on alternative dispute resolution and how to find approved providers.

Courts expect you to have considered these alternatives before issuing a claim. If you have not made reasonable attempts to settle, this could affect how the court views your case and potentially influence any decision about costs.

Before issuing a claim, consider whether the defendant actually has the money to pay. Winning in court does not guarantee payment. If the defendant has no assets or income, you may end up with a judgment you cannot enforce.

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Starting your claim

If other approaches have not resolved your dispute, you can begin the formal court process. Most small claims are started online through the Money Claims Online service, which is run by HM Courts and Tribunals Service. This system allows you to submit your claim, pay the fee, and track progress through a single online account. For claims not suitable for the online service, you can use paper form N1, available from GOV.UK or your local county court.

You will need to provide details of the defendant, which is the person or business you are claiming against. You must also set out the nature of your claim and the amount you are seeking. Be clear and factual in your description. Stick to what happened, when it happened, and what you want as a result.

There is a fee to issue a claim. The amount depends on how much you are claiming and whether you submit online or use a paper form. Current fee levels are listed on GOV.UK under court and tribunal fees. If you are on a low income or receiving certain benefits, you may be able to apply for help with fees using form EX160.

Once your claim is issued, the court sends it to the defendant, who then has a set period to respond. They can admit the claim, dispute it, or make a counterclaim against you. What happens next depends on their response.

If the defendant does not respond within the time allowed, you can ask the court to enter judgment in your favour by default. If they dispute the claim, the court will allocate the case to an appropriate track and send directions explaining the next steps.

What to expect at a hearing

Not all small claims require a hearing. If the evidence is clear and both parties agree, a judge may be able to decide the case on paper. However, many disputed claims will eventually be listed for a hearing.

Small claims hearings are relatively informal compared to other court proceedings. They usually take place in a room with everyone seated around a table rather than in a formal courtroom setting. The judge will introduce themselves and explain how the hearing will run.

You will be expected to bring all relevant documents and evidence with you. This might include contracts, receipts, photographs, correspondence, and any expert reports. Organise your paperwork so you can find things quickly if the judge asks to see something specific.

Both sides get the chance to explain their position and respond to what the other party says. The judge may ask questions to clarify points or fill in gaps. While small claims hearings are informal, you should remain respectful and polite. Addressing a district judge as "Sir" or "Madam" is appropriate. Being calm and sticking to the facts will serve you well.

Costs in small claims are limited. The losing party generally cannot be ordered to pay the winning party's legal fees. However, the losing party will typically have to pay the court fees and may have to cover certain other expenses such as witness travel costs. The full rules on costs are set out in the Civil Procedure Rules on GOV.UK.

After the hearing, the judge will either give a decision straight away or reserve judgment and send it to both parties in writing later. If you win, the court order will set out what the defendant must do, such as paying you a specified amount within a certain time.

If the defendant does not comply with the judgment, you can apply to enforce it. Enforcement options include using county court bailiffs, applying for an attachment of earnings order, or obtaining a charging order against property. Each enforcement method involves a further application and additional fees. Details of enforcement procedures are available on GOV.UK.

The Next Step

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