In England and Wales, under Part 26 of the Civil Procedure Rules, a defended money claim is normally allocated to the small claims track if it is worth up to £10,000, the fast track up to £25,000, the intermediate track up to £100,000, and the multi-track above that or where the case is too complex for the others. The track decides how formal the case is and, above all, how much of your legal costs the losing side can be made to pay.
1. Which track will my debt claim go to?
There are four tracks, and rule 26.9 of the Civil Procedure Rules sets the normal track for an ordinary claim for money. The small claims track is the normal track for a claim with a value of not more than £10,000. The fast track takes claims of not more than £25,000 that are not small claims, where the trial is likely to last no more than a day. The intermediate track takes claims of not more than £100,000 that suit neither of those, where the trial should last no more than three days and expert evidence is limited. The multi-track takes anything that fits none of the others, including most claims over £100,000.
The intermediate track is the newest. It was created by the Civil Procedure (Amendment No. 2) Rules 2023, which also extended fixed recoverable costs to most fast track and intermediate track claims. Under its transitional rule, the new allocation and costs rules apply to claims issued on or after 1 October 2023. Under its transitional rule, the new allocation and costs rules apply to claims issued on or after that date.
Value is only the starting point. The court also weighs complexity, the number of parties, any counterclaim and the parties' views.
2. When does allocation actually happen?
Only if the debtor defends. If they ignore the claim, there is no allocation at all: you ask for judgment instead, as our guide to default judgment for a business debt explains.
Once a defence is filed, rule 26.4 says a court officer provisionally decides which track looks most suitable and sends each side a notice of proposed allocation. Each party must then file a completed directions questionnaire by a set date and, for the fast, intermediate or multi-track, proposed directions as well.
Practice Direction 26 names the questionnaires as forms N180 and N181. If you miss it, the court sends a further notice giving 7 days to comply, and if you still do not, your claim is struck out automatically under rule 26.4. The parties cannot agree a later date, so treat it as fixed. The judge then allocates the claim, and is not bound even if both sides agree on a track.
3. How does the court value a debt claim?
Under rule 26.13(2), when the court assesses the financial value of a claim for allocation, it disregards:
- any amount not in dispute;
- any claim for interest;
- costs.
So, on the wording of rule 26.13, a claim issued at £14,000 where the debtor admits £5,000 and disputes the rest can be treated as a £9,000 dispute and go to the small claims track, with its very limited costs recovery. Interest you add does not push a claim over a threshold for allocation either.
4. What does it cost to issue and to reach a hearing?
The issue fee depends on the amount claimed, and the government's page on court fees for a money claim says it is based on the amount you are claiming including any interest. At the time of writing it lists £35 for claims up to £300, £205 for claims of £3,000.01 to £5,000, and £455 for claims of £5,000.01 to £10,000. Above £10,000 the fee is 5% of the claim, up to a maximum of £10,000 for claims over £200,000.
A defended claim that goes to a hearing carries a second fee. The official fee list, Civil court fees (EX50), sets small claims hearing fees by value, from £27 for claims up to £300 to £346 for claims over £3,000. It sets £619 for a fast track hearing and £1,334 for an intermediate track or multi-track hearing.
The EX50 also says an unpaid hearing fee leads to the claim being struck out, and that if the parties settle before the fee falls due, it does not have to be paid. Fees change, so check the list on the day you issue.
5. What does the mediation step mean for a small claim?
Since 22 May 2024, a defended small claim for a sum of money has been referred to mediation before any hearing. The rule is in Practice Direction 51ZE, a pilot scheme that applies to claims issued on or after that date and runs to 6 April 2027. It covers County Court claims that would normally go to the small claims track where the only remedy sought is a specified sum of money. Once all parties have filed their directions questionnaires, the claim is referred to the Small Claims Mediation Service run by HMCTS.
The government's mediation guidance describes how it works:
- for claims of £10,000 or less, you are told you must attend, and the court-organised service is free;
- the appointment is usually by telephone and lasts up to one hour;
- the mediator speaks to each side separately, so you do not have to speak to the debtor directly;
- what is said in mediation is confidential and cannot be mentioned in court;
- going to mediation first does not make you wait longer for a hearing if it fails.
Missing the appointment has consequences. Under the pilot, the judge at the final hearing must consider whether a sanction is appropriate, and a failure to attend can be weighed when deciding costs. The guidance says sanctions can include the case being struck out, or having to pay all court costs even if you win.
For claims above £10,000, the same mediation guidance says the court may offer mediation, but it goes ahead only if both sides agree. Go in knowing the lowest figure and payment terms you would accept.
6. What costs can you get back on each track?
Small claims track. Rule 27.14 limits what the court can order the losing side to pay. In a debt claim that is mainly the fixed costs on issue, the court fees, reasonable travel expenses, and capped sums for lost earnings and expert fees. The caps are in Practice Direction 27A: a sum not exceeding £95 per day for each person's loss of earnings, and not exceeding £750 for each expert. The court can order further costs against a party who has behaved unreasonably. If you pay a solicitor to run a small claim, assume you will bear most of that cost yourself.
Fast track and intermediate track. For claims issued on or after 1 October 2023, recoverable costs are generally fixed. Part 45 sets the amounts in tables, and the figure depends on the complexity band the claim is put in and how far it gets before it ends. Part 26 gives defended debt claims as an example of band 1 on both tracks. The fixed sum has nothing to do with what you actually spent. If a party behaves unreasonably, rule 45.13 allows the fixed costs to be raised or lowered by 50%.
Multi-track. Claims allocated here are not subject to fixed costs. Costs are assessed by the court instead, and Practice Direction 26 points out that costs budgets are needed in multi-track cases. More can be recovered, but more is at stake if you lose.
7. Does a business need a solicitor on each track?
No track requires one, but the case for one grows with the track.
On the small claims track, Practice Direction 27A says a party may present its own case at a hearing, or have a lawyer or lay representative present it, and that any of its officers or employees may represent a corporate party. Hearings are informal and the strict rules of evidence do not apply. The government's guide to what happens at the hearing confirms you can represent yourself.
On the fast, intermediate and multi-tracks the procedure is fuller: directions, disclosure, witness statements and a formal trial. A company can still be represented at trial by an employee under rule 39.6, but only if the company has authorised that employee and the court gives permission. Because costs on the fast and intermediate tracks are fixed, compare what a solicitor would charge with what you could recover.
8. What practical choices should you make before you issue?
Claim interest, and claim it properly. If you want interest, you must include it in the claim, as the government's page on interest on money claims says. The same page notes there is a different way to charge interest when one business claims against another, which our guide to late payment interest on a business debt covers. Interest is ignored for allocation but counts towards the issue fee.
Bring the whole debt in one claim. Do not split one debt into several smaller claims to stay under a threshold. Claim it once, in full, and let the court allocate it.
Think about what is really in dispute. Because undisputed sums are disregarded, a partial admission can move your claim down a track. Press for any admitted amount to be paid, and keep the dispute to what is genuinely contested.
Check the debtor can pay. A judgment on any track is only worth what you can enforce. Check the company on Companies House before you spend money on fees. The wider route, from final demand to enforcement, is in our guide on how to recover a business debt in the UK.
Northern Ireland and other parts of the UK have their own rules, so none of the above applies to a claim brought there.
9. When should you pass it on?
You can run a small claim yourself. Many businesses hand the matter over when:
- a defence has been filed and the claim looks likely to go to the fast track or above;
- the debtor has admitted part of the debt and disputes the rest;
- the debtor is in another country, or has gone quiet or changed its name;
- you are not sure whether the debtor has assets worth pursuing.
If any of those apply, contact us with the invoice, your terms and any correspondence, and we will talk through the options.
This guide is general information about the law in England and Wales as it stood when it was written. It is not legal advice, and it does not take account of your circumstances. For advice on a particular case, speak to a solicitor.