Interest on money claims

You may be able to claim interest on the money you’re owed. The amount of interest you can claim is based on how long you’ve been owed money. Interest can continue to build up until your claim is paid, settled or decided by the court. If you want to claim interest, you must include it in your claim. If you’re claiming interest The person or business you’re claiming money from (the ‘defendant’) can agree to pay the interest: when they pay the claim as part of a settlement agreement (for example, through mediation ) If you and the defendant cannot agree, the court will decide whether interest should be awarded. The court’s decision depends on things like: the type of claim any contract between you and the defendant the length of time you’ve been owed money Check if you need to work out the interest If you’re making a claim online , interest will be calculated for you. You’ll usually need to work out the interest yourself if you’re making a claim by post. If you do not know the claim amount You must make a claim by post if you do not know the exact amount - you cannot make a claim online. You’ll need to estimate the amount you’re claiming or leave the ‘amount claimed’ blank. The court will decide how much you’re owed and any interest that applies to your claim. If you’re claiming different interest rates The online service can only calculate interest at one rate. If you’re claiming different interest rates for different periods, you’ll need to work out the interest yourself and make your claim by post. If you need to calculate the interest The rate is usually 8%. If you’re a business making a claim against another business, there’s a different way to charge interest on a late commercial payment . To calculate the rate: Work out the yearly interest: take the amount you’re claiming and multiply it by 0.08 (which is 8%). Work out the daily interest: divide your yearly interest from step 1 by 365 (the number of days in a year). Work out the total amount of interest: multiply the daily interest from step 2 by the number of days the debt has been overdue. Example If you were owed £1,000: the annual interest would be £80 (1000 x 0.08 = 80) you’d divide £80 by 365 to get the daily interest: about 22p a day (80 / 365 = 0.22) after 50 days this would be £11 (50 x 0.22 = 11)

You must pay a fee when you make your claim. The fee amount depends on how much you’re claiming. You may need to pay other fees later, for example if there’s a court hearing or you need a judgment enforced. You can usually: apply for help with fees if you have a low income or you’re on certain benefits claim the fees back if you win the case If you know the claim amount The fee is based on the amount you’re claiming, including any interest . If you do not know the claim amount If you’re estimating the amount you’re claiming, you’ll need to pay the fee for that amount. For example, if you estimate you’re claiming between £3,000.01 and £5,000, you’d have to pay £205. If you leave the ‘amount claimed’ blank, the fee is £10,000. Check the fee Claim amount Fees Up to £300 £35 £300.01 to £500 £50 £500.01 to £1,000 £70 £1,000.01 to £1,500 £80 £1,500.01 to £3,000 £115 £3,000.01 to £5,000 £205 £5,000.01 to £10,000 £455 £10,000.01 to £200,000 5% of the claim More than £200,000 £10,000 To calculate 5% of the value of the claim, take the amount you’re claiming and multiply it by 0.05. If necessary, round down the result to the nearest 1 pence. The fee will be calculated for you if you make your claim online. Get help to pay the fee You can apply for help with fees online or by post. Apply for help online Apply for help with fees online before you make a court claim. You’ll get a ‘help with fees’ reference number - you’ll need this when you make your court claim . Apply for help by post If you apply for help with fees by post, you’ll need to make your court claim by post too. Apply for both at the same time. Fill in form EX160 for help with fees. Fill in form N1 to make a court claim for money. Return both forms to the Civil National Business Centre. Civil National Business Centre St Katharine’s House 21-27 St Katharine’s Street Northampton NN1 2LH How to pay the fee Pay by credit or debit card if you’re making a claim online. If you use the paper claim form, pay by credit or debit card by sending a letter with your form asking to pay by card. Include your telephone number and a suitable time for the court to call you and take the payment. You can also pay by postal order or cheque (payable to ‘HM Courts and Tribunals Service’) if you use the paper claim form.

You can make your claim online, unless: you do not know how much money you want to claim you’re making the claim on behalf of more than one person or organisation your claim is against 3 or more people or organisations you or the people or organisations you’re claiming against do not have an address in England or Wales your claim is against a government department Claim by post if you cannot claim online. You cannot make a claim if you’re told that someone is temporarily protected from creditors through the ‘Breathing Space’ scheme. Find out what to do when someone is using the ‘Breathing Space’ scheme . You may need to get legal advice if your claim is complex. Claim online You’ll be asked for the name, address and email address of the person you’re claiming against. You’ll also need either: a debit or credit card to pay the court fee your ‘help with fees’ reference number if you’ve already applied for help with fees online If you still need to apply for help with fees, you can do this while you make your money claim online. Make a money claim If you need help claiming online If you’re having technical issues or need guidance about how to claim, use the contact options in the online service. If you do not have access to the internet or do not feel confident using it We Are Group support@wearegroup.com Telephone: 03300 160 051 Monday to Friday, 9am to 5pm Closed on bank holidays Text FORM to 60777 and someone will call you back Find out about call charges Claim by post To claim by post, download and fill in paper claim form N1 . Paper claim form N1 is also available in Welsh. Send the paper form to the Civil National Business Centre with a cheque or postal order for your court fee . If you’re applying for help with fees send the paper form with either: the ‘help with fees’ reference number you’ll get when you apply for help online your completed ‘help with fees’ application form, if you’re applying for help by post Civil National Business Centre St Katharine’s House 21-27 St Katharine’s Street Northampton NN1 2LH Help claiming by post Contact the Civil National Business Centre if you need help claiming by post. If you have a disability or health condition, you can ask for a reasonable adjustment. Civil National Business Centre Telephone: 0300 123 1056 Monday to Friday, 8:30am to 5pm Welsh language: 0300 303 5174 Monday to Friday, 9am to 5pm Find out about call charges You can also request a reasonable adjustment for applying by post by emailing: CCMCC-RA@justice.gov.uk

Resolve your claim through mediation

If the person or business owing you money (the ‘defendant’) disagrees with your claim, you can use a mediator to help you reach an agreement. A mediator is an impartial professional who will speak to both you and the defendant separately. They’ll usually contact you by phone, so you do not need to meet or speak directly to the defendant. Mediation is usually free and can often mean you do not have to go to court. You will not have to wait longer for a court hearing if you go to mediation first and do not reach an agreement. Mediation is confidential and you cannot mention what happened during the appointment if you go to court. If your claim is £10,000 or less You’ll be told you must attend mediation organised by the court. You’ll be given a date and time for your telephone appointment. This service is free. If your claim is more than £10,000 The court may offer to organise mediation. If both sides agree to it, you’ll get a date and time for your telephone appointment. If the court does not offer mediation, you can use an independent mediator for a claim of any amount. There’s a fixed fee for this service . Mediation organised by the court A mediator from HM Courts and Tribunals Service (HMCTS) will speak to you separately by phone to help you to explore options, negotiate and agree a settlement. The appointment will last up to one hour. You can have someone with you during your mediation appointment, for example, a trusted friend, a relative, or a solicitor. Contact the small claims mediation service before your appointment if: you have a physical, mental or learning disability of long-term health condition that means you need support during your mediation appointment you’re vulnerable (for example, you’re worried about your safety) you have other questions about your claim or appointment Include your claim number when you contact the small claims mediation service, if you have one. Small claims mediation service scmreferrals@justice.gov.uk Telephone: 0300 123 4593 Monday to Friday, 9am to 5pm Find out about call charges If you do not attend your mediation appointment If you do not attend your mediation appointment, you’ll usually need to go to a court hearing instead. You can continue to try to reach an agreement with the other side up to the date of the hearing (for example, through independent mediation). If you can reach an agreement, you will not need to attend the court hearing. If you’ve been told you must attend mediation, the judge can sanction you if you do not attend or make an effort to reach an agreement. Sanctions can include your case being dismissed (‘struck out’) or having to pay all court costs even if you win. If you tell the court why you did not attend your mediation appointment, the judge will take your reasons into account when deciding on your sanctions. You can tell the court why you did not attend: in your Money Claims online account, if you have one at your court hearing If you want your reasons for not attending your appointment to be private, contact the court your hearing will be in. You may be told to fill in a N244 form to request that the information is kept private. You may need to pay a fee. If you reach an agreement You’ll make a verbal agreement at the mediation appointment. This is legally binding which means that you must follow it. You’ll be given the terms of the agreement in a document – this is called a settlement agreement. If either side breaks the terms, then the other side can ask for a judgment or hearing. If you do not reach an agreement You’ll have to attend a court hearing .

What happens at the hearing

If there’s a hearing, you can: represent yourself pay for a barrister or solicitor to represent you ask someone to speak on your behalf - you might need to get the court’s permission Your hearing can be held in the judge’s room or a courtroom in a county court if your claim is for less than £10,000. There might be a more formal hearing if you’re claiming for more. After the hearing You’ll get a decision on the day of the hearing. The court will also send you a copy of the decision by post. If you win your case, the court will order the person or business who owes you money (the ‘debtor’) to pay you. There are ways the court can collect your payment if they ignore the court order. Appeal the decision You can appeal the decision if you think the judge made a mistake during the hearing. You must do this within 21 days of getting the decision. Find out which court or tribunal to appeal to . Contact Citizens Advice to get free advice on appealing.

You can ask the court to collect payment from the person or business who owes you money (the ‘debtor’) if they do not pay you after receiving the court order. You must pay a court fee when you ask the court to collect the payment. Find out what the debtor can afford to pay Ask the court to order the debtor to attend court to provide evidence of their income or spending, for example bills and statements. If the money is owed by a business, you can ask for an officer from the company to attend court and give details of its accounts. You can then decide if you want the court to take further action to collect your payment. You cannot enforce a judgment if you’re told that the person who owes you money has got a ‘Breathing Space’ and is temporarily protected from their creditors. Find out about your responsibilities and what you need to tell the court during a ‘Breathing Space’ . Send bailiffs to collect payment You can ask the court to send bailiffs to collect the money. This is called a ‘ warrant of control ’. The bailiff will ask for payment within 7 days. If the debt is not paid, the bailiff will visit the debtor’s home or business to see if anything can be sold to pay the debt. You can apply to either a county court or the High Court if you’re owed between £600 and £5,000. You may need legal advice if you apply at the High Court. How you apply to the court depends on how you made your claim. You claimed online If your reference number has ‘MC’ in it, download and fill in either: form N323 - to apply at a county court (you must be owed £5,000 or less) form N293A - to apply at the High Court (you must be owed at least £600) Otherwise, enforce a judgment using Money Claim Online . You used a paper claim form Download and fill in either: form N323 - to apply at a county court (you must be owed £5,000 or less) form N293A - to apply at the High Court (you must be owed at least £600) Get money deducted from wages You can ask the court to take money from the debtor’s wages to pay the debt. This is called an ‘ attachment of earnings ’. The court will do this by sending an order to the debtor’s employer. Download and fill in a request for an attachment of earnings order form N337 . Freeze assets or money in an account You can ask the court to freeze money in the debtor’s bank, building society or business account. This is called a ‘ third-party debt order ’. The court will decide if money from the account can be used to pay the debt. Download and fill in a request for a third party debt order form N349 . Charge the debtor’s land or property You can ask the court to charge the debtor’s land or property. This is called a ‘ charging order ’. If the land or property is sold, the debtor must pay this charge before they get their money. Download and fill in a request for a charging order form N379 .

Make a court claim for money

What a court claim is

You can apply to a county court to claim money you’re owed by a person or business.

This is known as making a court claim. It often used to be known as taking someone to a ‘small claims court’. You can apply online or by post.

This guide is also available in Welsh (Cymraeg).

You may not have to attend a court hearing after you make your claim if:

the person or business you’re claiming from agrees to pay
you work out an agreement through mediation

The court may organise free mediation for you, depending on the amount you’re claiming.

Get advice

You can get help and advice about making a claim for money from:

Advicenow
Citizens Advice

There’s a different process to make a court claim in Scotland and to make a court claim in Northern Ireland.

View a printable version of the whole guide

Make a court claim for money

What a court claim is

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