Pricing Structure

Undisputed Business to Business Debts

The costs detailed below apply where your claim is in relation to an unpaid invoice that is not disputed, the debtor is located in England or Wales, 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 the costs 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.

Letters Before Action

The average cost of a letter before action is £20 plus VAT unless the debtor is a sole trader in which case it rises to £50 plus VAT due to the added requirements stipulated by the Pre-Action Protocol for Debt Claims. 

The fees include receiving your instructions, checking the documentation and sending an appropriate letter before action and, if the debt is paid, receiving payment and accounting to you.

Our letters before action usually require payment from the debtor within seven days. However, where the debtor is a sole trader, due to the requirements of the Pre-Action Protocol for Debt Claims, it is necessary to allow a period of 30 days.

Generally speaking, our fees are not recoverable from the debtor.

See below in relation to additional fees that will be payable in the event that late payment compensation is recovered from the debtor.

Court Claims

In the event that the letter before action does not result in payment, the next step is to issue a claim in the County Court. The costs associated with doing so are as follows:-

FEES & COSTS ON ISSUE OF CLAIM

CLAIM VALUE

COURT FEE

OUR COSTS

Up to £300

£35.00

£30.00 + VAT

£301 to £500

£50.00

£50.00 + VAT

£501 to £1,000

£70.00

£70.00 + VAT

£1,001 to £1,500

£80.00

£80.00 + VAT

£1,501 to £3,000

£115.00

£90.00 + VAT

£3,001 to £5,000

£205.00

£100.00 + VAT

£5,001 to £10,000

£455.00

£125.00 + VAT

£10,001 to £15,000



5 % of the value

of the claim

£150.00 + VAT

£15,001 to £25,000

£250.00 + VAT *

£25,001 to £50,000

£500.00 + VAT *

£50,001 to £100,000

£800.00 + VAT *

* In relation to claims over £15,000, if the debt is not recovered we will only charge you fees of £150 + VAT.

In addition, compensation can be claimed as follows:-

INVOICE AMOUNT

COMPENSATION

Up to £999.99

£40.00 per invoice

£1,000 to £9,999.99

£70.00 per invoice

Over £10,000

£100.00 per invoice

When the compensation is recovered from the debtor, we will charge additional fees amounting to 50% of the compensation recovered. That charge will be subject to VAT. You keep the remainder of the compensation and any interest recovered.

Anyone wishing to proceed with a claim should note that:

  • The VAT element of our fees cannot be reclaimed from the debtor.
  • The late payment interest and compensation may take the debt into a higher banding, with a higher cost.
  • The fees include drafting and issuing the claim, reporting to you once a Notice of Issue is received, and accounting to you if payment is received.

It usually takes two to four weeks for a Notice of Issue to be received and, in the first instance, the debtor has 14 days following service of the claim to respond.

Where no Acknowledgment of Service or Defence is received, or if the debtor files an Admission, additional fees will be payable as follows:-

CLAIM VALUE

OUR COSTS

 

Default of
Acknowledgement of Service

Default of Defence

Admission Accepted

Admission Rejected

Up to £5,000

£22.00 + VAT

£25.00 + VAT

£40.00 + VAT

£55.00 + VAT

Over £5,000

£30.00 + VAT

£35.00 + VAT

£55.00 + VAT

£70.00 + VAT

The fees include applying to the Court to enter Judgment against the debtor then, once the Judgment is received, writing to the debtor requesting payment, and accounting to you if payment is received.

If payment is not received, usually within seven days of writing to the debtor, we will provide advice on next steps, likely costs and timescales.

Additional fees will become payable in the event that enforcement action, such as instructing a bailiff, is needed to collect the debt.

Other Points To Note

Where any matter necessitates protracted or non-standard correspondence or telephone calls or where, for example we correspond with a debtor, additional charges are levied based on an hourly rate of £125 plus VAT.

This charging structure only applies to uncontested/straightforward debt recovery matters. If a matter is contested/not straightforward it will be dealt with by a fee earner within the Commercial Litigation team and will be charged at an appropriate hourly rate depending on the value and complexity of the matter. We will always speak to you before changing the charging structure.

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