Letter Before Action (Debt) template

About this document

What it’s for

The formal “letter of claim” you send before starting a County Court claim for an unpaid debt. Courts expect parties to exchange enough information to try to settle before going to court. If you skip this step, or do it badly, the court can penalise you in costs or interest, or put your claim on hold.

The document contains two complete letters: Version 1 for business debtors that are companies, LLPs or partnerships, and Version 2 for individuals (consumers and sole traders), which must follow the Pre-Action Protocol for Debt Claims.

When to use it

After a final demand has been ignored, or the customer has stopped responding
When you have decided you are prepared to issue a court claim if the debt is not paid
Before passing a debt to a solicitor, to keep costs down

What’s inside

The document is laid out in the sections below. Each one comes with a plain-English guidance note explaining what it does and what to change.

Version 1 – Letter before claim to a business
Version 2 – Letter before claim to an individual, following the Pre-Action Protocol for Debt Claims
The basis of the claim, the amount claimed and previous requests
What the debtor must now do, and what happens if they do not respond
Information sheet and reply form for individual debtors
Guidance on which version to use

How to complete it

Pick the right version – the protocol version must be used whenever the debtor is an individual, including a sole trader
Complete every placeholder; check the debtor’s exact legal name and address
For Version 2, attach the Information Sheet and Reply Form from Annex 1 of the Protocol, a financial statement form and an up-to-date statement of account
Diary the response deadline and do not issue a claim before it has passed

Key points to check

From 1 October 2026 the Protocol expects letters of claim to individuals to be sent by email (or another electronic method you hold) as well as by post
Claims up to £10,000 normally go to the small claims track, which now includes a free, compulsory mediation appointment
Debts over six years old (from when payment became due) may be statute-barred in England and Wales – take advice
Scotland and Northern Ireland have different court procedures – this letter is for England and Wales

Our templates are professionally structured starting points for UK businesses, not legal advice. For anything complex, unusual or high-value, have your final version checked by a solicitor.

Included in the pack

Finance & credit control

£20

for every document in this category

Editable Microsoft Word files

Guidance notes in every document

Written for UK businesses

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Letter Before Action (Debt)

What it’s for

When to use it

What’s inside

How to complete it

Key points to check

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