Letter Before Action — Money Owed: Free Template and What to Include

If you need to final demand before starting small claims court proceedings for money owed, a written letter is the recommended first step — it creates a clear record and shows you're pursuing the matter formally. Below is what a strong letter before action — money owed should include.

What this letter needs to cover

• State the amount owed, how it arose and the date it became due
• Confirm previous attempts to recover the money
• Give 14 days to pay in full
• State that failure to respond will result in a small claims court claim being issued without further notice
• In England and Wales, say you will ask the court to order them to pay the court fee, and claim interest if you choose to

The final step before pursuing money owed through the courts

A letter before action for money owed sets out clearly what's owed, why, and gives one final opportunity to pay before court proceedings begin — courts generally expect to see evidence of this step.

What to include before you send it

• A clear breakdown of the amount owed and how it arose
• Any supporting evidence — invoices, contracts, or previous correspondence
• A final deadline for payment, typically 14 days
• Confirmation that court proceedings will follow if payment isn't received

Why a clear, itemised breakdown strengthens your position

A vague demand for "money owed" is far weaker than a clear, itemised account showing exactly how the figure was calculated — this makes it harder for the other party to dispute the amount, and gives a court a clear basis to work from if the matter does proceed to a hearing.

Frequently Asked Questions

Can I claim interest on money owed for a long time?
In England and Wales, for most debts you can claim interest, usually at 8% a year. In Scotland or Northern Ireland, ask Citizens Advice Scotland or Advice NI.

What if the person owing money says they can't afford to pay right now?
You can consider agreeing a reasonable payment plan, though this should be documented clearly in writing to avoid future disputes about what was agreed.

[Your Name]
[Your Address]
[Your Postcode]
[Your Phone Number]
[Your Email Address]
[Name / Business Name]
[Address]
[Postcode]
[Date]

Dear [Name],

Subject: Letter before action – unpaid money of £[amount]

You owe me £[amount] for [what it is for, e.g. design work completed on 12 August 2026]. It was due on [Date].

I reminded you on [Dates], but it has not been paid. I enclose:
• [e.g. invoice number 123]
• [e.g. our email agreement dated 1 August 2026]
• [e.g. delivery receipt]

[England and Wales: I am sending this letter under the Practice Direction on Pre-Action Conduct and Protocols.]

Please pay the full £[amount] within 14 days of this letter, by [how you want to be paid, e.g. bank transfer to the account on my invoice].

If I do not receive payment or a satisfactory reply by [Date 14 days from today], I will start a court claim without further notice [England and Wales: in the County Court. I will ask the court to order you to pay the court fee [and I will claim interest] / Scotland: by simple procedure in the sheriff court / Northern Ireland: in the small claims court].

Yours sincerely,

[Your Signature]
[Your Printed Name]