How do I write a letter before action?

Keep it factual and specific. A good letter before action covers:

• Who you are and who owes you, using the debtor's exact legal name (for a company, its registered name and number)
• What the debt is for: the contract or order, what you supplied and when, and the invoice numbers and dates
• The amount and how you worked it out, including any payments received, and whether interest or charges are still running
• Interest and compensation, if the debtor is a business, at the statutory rate (8% over Bank of England base rate) plus the fixed sum for late payment
• A clear deadline and how to pay
• What happens next: that you intend to start court proceedings without further notice if they don't pay or respond
• An invitation to respond: if they dispute the debt, ask them to say why, and say you're open to discussing a payment plan or mediation

Enclose or list the key documents, such as the contract and unpaid invoices. Date the letter and send it in a way you can prove, and keep a copy.

Stick to facts and don't threaten anything you can't lawfully do. Knowingly making a false statement in a pre-action letter can lead to contempt of court proceedings.

The Pre-Action Protocol for Debt Claims applies when a business claims a debt from an individual, including a sole trader. It doesn't apply to business-to-business debts unless the debtor is a sole trader. Its letter (called a Letter of Claim) should:

• state the amount, whether interest or charges are continuing, and how to pay or discuss payment options
• explain the agreement: for a written contract, its date and parties and that a copy is available; for a verbal one, who agreed what, and when and where
• include an up-to-date statement of account
• enclose the Information Sheet and Reply Form from the protocol and a Financial Statement form

Date it at the top and post it that day or the next. Since 1 October 2026, if you have a personal email address for the debtor you should also send it by email.

Wait 30 days from the date of the letter before issuing a claim. If the debtor replies that they're getting debt advice, allow a reasonable time for it, and don't issue until at least 30 days after you receive the completed Reply Form or provide any documents they ask for. If you still can't agree, give at least 14 days' notice before you start proceedings.

There's no specific protocol for most business-to-business debts. Instead, the Practice Direction on Pre-Action Conduct and Protocols applies. You should write with concise details of the claim: its basis, a summary of the facts, what you want and how any sum is calculated.

The debtor should reply within a reasonable time, which the practice direction puts at 14 days in a straightforward case and no more than 3 months in a very complex one. Both sides should exchange key documents and consider negotiation or mediation before going to court.

These rules apply to court claims in England and Wales. Scotland and Northern Ireland have their own court rules, but a clear letter before you sue is still good practice there.

Courts expect parties to follow the protocol or practice direction in substance, though they generally ignore minor or technical slips. If you skip the letter or give an unreasonably short deadline, the court can:

• pause the claim until the pre-action steps are done
• order you to pay some or all of the other side's costs, sometimes on a higher basis
• refuse or reduce the interest you would otherwise recover

Pre-action steps don't stop the clock on limitation periods. If time is about to run out, you can issue the claim and ask the court to pause it while you complete the steps.