The small claims court for businesses

The small claims court can be a very useful resource for small businesses who've been left out of pocket or who have experienced bad service or damage. Taking legal action should always be an absolute resort for claiming back money - but if you feel that things have got to that stage, read this guide to find out more about:

  • What is the small claims court?
  • How the small claims court can help you
  • Why it might not be the right choice
  • How to make a claim

What is the small claims court?

People talk about the 'small claims court', but all this really means is a small claim that goes through the normal county court. The process is called the small claims track. You don't need a solicitor to make a small claim. Debts of up to £5,000 are dealt with as small claims through your local county court - you can find your local one at Her Majesty's Courts Service (HMCS) here. In Scotland, you use the sheriff court, and in Northern Ireland, the maximum amount for small claims varies. It's best to get legal advice for claims more than £5,000 - these must be issued in either your county court or the high court.

  • A small claim that goes through your local county court
  • No solicitor needed
  • For claims up to £5,000 - if more, get legal advice

How the small claims court can help you

The small claims court can help you recover debts owed to you that you can't get back any other way. You can also issue claims for damage to your property, bad workmanship, goods not supplied or faulty goods, personal injury or road traffic accidents.

  • For debts owed and other damage caused to you or your business

Why it might not be the right choice

Taking legal action should always be a last resort. Consider how cost-effective making a claim will be, as you need to pay a fee (the amount depends on the claim). It might be easier, cheaper and a lot less time-consuming to write off small sums. If the customer in question looks set to make lots of orders in the future, it's probably worth forgetting about this bit of debt so you can get more business from them in the future. And if it's only a small amount, don't get carried away with proving a point by making a claim - you don't want to get a bad reputation amongst customers.

  • Consider cost and time
  • Consider writing off the debt if the customer looks likely to use your business often or if it may damage your reputation

How to make a claim

Issue your claim by visiting your local county court, or online at You need to fill out a form, also available online at the HMCS website, which you give a copy of to the defendant (the person or business you're making the claim against) and the court. The court gives you notes and guidance on how to make your claim, and the defendant gets sent a defence pack detailing the claim against them. They then either accept the claim and pay out or dispute it - your court can advise you what to do if this happens.

  • Issue the claim at or at your local county court
  • Fill out the form, read through notes and guidance and wait for defendant response

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