Understanding the English Small Claims Court System: A Complete Guide

If you’re owed money or have a dispute involving a small sum in England or Wales, the Small Claims Court is likely your best option. This guide explains how it works, what to expect, and how to make or defend a claim effectively.

What Is the Small Claims Court?

The Small Claims Court is part of the County Court system in England and Wales. It’s designed to handle low-value civil disputes quickly, informally, and without excessive cost. Officially, it’s not a separate court but a procedure within the County Court for resolving claims up to a certain value.

What Type of Disputes Can You Take to Small Claims Court?

The Small Claims Court typically handles:

• Unpaid invoices or loans
• Faulty goods or services
• Disputes between landlords and tenants (e.g. deposit issues)
• Road traffic accidents (with modest damages)
• Breach of contract claims

It doesn’t cover criminal cases or large claims. Complex disputes involving large financial sums, personal injury exceeding set limits, or business disagreements involving substantial sums usually go through different tracks of the civil justice system.

What Is the Small Claims Limit?

As of 2025:

• For most claims: up to £10,000
• For personal injury and housing disrepair claims: up to £1,000
• Claims above these amounts are dealt with under the fast track or multi-track procedures.

Is It Worth Making a Small Claim?

That depends on your situation. Here are some pros and cons:

Advantages:

• Relatively low court fees
• No need for a solicitor
• Fast and straightforward process
• Online claims possible

Disadvantages:

• You might not recover legal costs if you win
• Time and stress involved
• The defendant might not pay, even if you win

If your claim is solid and the defendant has the means to pay, it’s usually worth pursuing.

How to Make a Small Claim

You can file your claim online or by post. The Money Claim Online (MCOL) platform is the easiest way for most users.

Step-by-Step Process:

1. Send a Letter Before Action You must notify the other party in writing. This is called a “Letter Before Claim” or “Letter Before Action”. It outlines:
   • What the claim is about
   • What you want (e.g. refund, payment)
   • A deadline (usually 14 days) to respond
2. Issue a Claim If there’s no response or resolution, you can start a claim using Money Claim Online or through a paper form (N1).
3. Pay the Fee Court fees depend on the claim amount. For example:
   • Claims under £300: £35 (online)
   • Claims over £5,000 and up to £10,000: £455 (online)
4. Wait for the Defendant’s Response The defendant has 14 days to respond. They can:
   • Pay in full
   • Admit part of the claim
   • Defend the claim
   • File a counterclaim
5. Court Allocates the Claim If defended, the court may:
   • Order mediation
   • Set a hearing date
   • Ask for documents and statements
6. Attend the Hearing (if needed) Most small claims hearings are informal. You present your case, the defendant responds, and the judge decides. Many claims settle before this stage.
7. Get the Judgment If you win, the court may order the defendant to pay. If they don’t, you may need to take enforcement action.

What If the Defendant Doesn’t Pay?

Winning a judgment doesn’t guarantee payment. If the defendant doesn’t pay, you can enforce it using:

• Warrant of Control (bailiffs)
• Attachment of Earnings (money taken from wages)
• Charging Order (against property)
• Third Party Debt Order (freezing bank accounts)

Each has its own fees and procedures, but costs can often be added to the amount owed.

How Long Does a Small Claim Take?

On average:

• Uncontested claims: 4–6 weeks
• Disputed claims: 3–9 months (depending on court workload)

Delays are common, so be prepared for the process to take time.

Can I Recover Legal Costs?

In small claims, legal costs are usually not awarded, even if you win. This keeps the process affordable. However, you can claim:

• Court fees
• Reasonable travel expenses
• Loss of earnings for attending court (limited to £95/day)
• Witness expenses

Should You Use a Lawyer?

Most people represent themselves in small claims. It’s called litigating in person. The process is designed for this. You don’t need legal training, but you should be well-prepared.

If your claim is complex, you can consult a solicitor, but it is an expensive route, and going directly to a Barrister is likely to be more cost effective

Mediation: An Alternative to Court

The Small Claims Mediation Service is free and offered by the court. It’s a phone-based service to help both parties settle the dispute without a hearing. Many disputes settle at this stage, saving time and cost.

Advantages of mediation:

• Quicker resolution
• No court appearance
• Less adversarial

You don’t have to agree to mediation, but refusing without good reason could impact the court’s view of your case.

Tips for Success in the Small Claims Court

• Keep all records: contracts, messages, emails, invoices
• Be organised: know your facts, amounts, and timeline
• Be clear and concise: judges don’t want rambling stories
• Stay calm and polite: especially in court
• Use evidence: photos, receipts, bank statements

The more prepared and reasonable you appear, the more likely you are to succeed.

Common Mistakes to Avoid

• Not sending a proper letter before action
• Failing to respond to court directions
• Missing deadlines
• Being too emotional or aggressive
• Overcomplicating your argument

Stick to facts, deadlines, and procedure.

Defending a Small Claim

If you’ve received a claim, don’t ignore it. You have 14 days to respond, or you risk a default judgment.

Options include:

• Pay in full
• Dispute the claim (with reasons and evidence)
• Negotiate settlement
• Counterclaim if you believe the claimant owes you money

If you need more time, file an Acknowledgement of Service to extend your response window to 28 days.

Is Small Claims Court the Same in Scotland and Northern Ireland?

No. Scotland has the Simple Procedure, and Northern Ireland has its own Small Claims Court system. The rules, limits, and processes differ. This guide is specific to England and Wales.

Final Thoughts

The English Small Claims Court is designed to be accessible. It’s there to help individuals and small businesses resolve disputes without the complexity of full-blown litigation. While it requires time, paperwork, and patience, many claimants successfully recover money or settle disputes through it.

Whether you’re a landlord chasing rent arrears, a business owner dealing with an unpaid invoice, or a consumer seeking a refund, understanding the system boosts your chances of success.

Need help writing a Letter Before Action or preparing your claim?
We can assist you in constructing a compliant pre-protocol Letter Before Action.