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How much will it cost to recover a debt owed to my business?

At Clarke Willmott we have a debt recovery team who regularly act for small to medium sized businesses in the collection of unpaid debts. There are other teams at Clarke Willmott who deal with more complex business disputes that require a more tailored approach. The information set out below is for our debt recovery team. Please see our services pages for our other litigation teams to view the range of other services we offer.

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Our standard debt recovery charges are on a fixed costs basis except for instalment monitoring and defended/complex actions. Our charges and disbursements (including Court fees) will be payable whether or not they can be recovered from the debtor. Where a charge is recoverable from the debtor, we will endeavour to seek payment of that charge as well as interest on the debt.

Full fee details:

For new clients, we charge a one-off, new client set-up fee of £55 + VAT at 20% (£11). Total payable: £66.

For each case then sent to us, we charge a fixed fee proportionate to the debt amount. In most cases our fee is recoverable from the debtor. In some cases, if we believe a case is sufficiently complex or will require additional work, we will apply a higher fee. If this applies, we will explain our reasons and agree this with you beforehand.

We charge a fixed pre-litigation fee depending on the value and complexity of the case(s).The fee will always be agreed with you before action is taken.

The pre-litigation fee includes our pre-action protocol compliant letter, pre-legal discussions and advising you of responses received.

Wherever possible, we will claim interest on the debt and late payment compensation on your behalf.

Timescales

Where the debtor is an individual/sole trader, the initial letter must allow a minimum of 30 days for the debtor to reply.

Where the debtor is a company, the initial letter must allow a minimum of 14 days for the debtor to reply.

It is a requirement of the Court that you endeavour to resolve all issues prior to litigation and accordingly, you may be obliged to allow the debtor additional time to pay or seek advice.

We charge fixed fees proportionate to the debt amount. If a defence is received, we will provide a time-based fee estimate (see hourly rates below).

Court Fees are subject to change from time to time. The Court fees stated in the tables below are correct as of 8 April 2025.

Our typical charges for legal action are below. If a claim, judgment application, enforcement or insolvency action is particularly complex and we are required to revise our charges from the amounts below we will agree these with you in advance.

On issuing a claim
Debt value Our charge excluding VAT.
(VAT is payable at 20%)		 Court fee
(VAT not payable)
Up To £299 £118 + VAT at 20% (£23.60) = £141.60 £35
£300 – £499 £118 + VAT at 20% (£23.60) = £141.60 £50
£500 – £999 £118 + VAT at 20% (£23.60) = £141.60 £70
£1,000 – £1,499 £297 + VAT at 20% (£59.40) = £356.40 £80
£1,500 – £2,999 £297 + VAT at 20% (£59.40) = £356.40 £115
£3,000 – £4,999 £297 + VAT at 20% (£59.40) = £356.40 £205
£5,000 – £9,999 £533 + VAT at 20% (£106.60) = £639.60 £455
£10,000 – £199,999 £888 + VAT at 20% (£177.60) = £1,065.60 5% of the claim
£200,000+ £888 + VAT at 20% (£177.60) = £1,065.60 £10,000

 

Timescales

Once the Court issues the Claim Form, the debtor has 14 days from the date of service to reply. Where the debtor indicates an intention to defend, this will extend to 28 days from the date of service.

Upon expiry of that period if no defence is received, we will proceed to apply for Judgment.

If a defence is received, the timescales will depend on the particular Court, the value and complexity of the debt. We will keep you advised of progress throughout the case.

On requesting judgment our charges are set out below excluding VAT (VAT is payable at 20%)
Debt value (including costs and interest claimed) Default of
acknowledgement		 Default of
defence		 Admission;
proposal accepted
 Admission;
proposal rejected
Up to £4,999 £25 + VAT at 20% (£5) = £30 £29 + VAT at 20% (£5.80) = £34.80 £47 + VAT at 20% (£9.40) = £56.40 £66 + VAT at 20% (£13.20) = £79.20
£5,000+ £37 + VAT at 20% (£7.40) = £44.40 £42 + VAT at 20% (£8.40) = £50.40 £66 + VAT at 20% (£13.20) = £79.20 £84 + VAT at 20% (£16.80) = £100.80

Enforcement action may be required to recover an outstanding debt after Judgment. If it is, we will advise you on the most appropriate method of enforcement and the costs that will apply.

Timescales

We are unable to provide a timescale on enforcement action as this will depend on many factors including the Court’s caseload and the debtor’s circumstances.

Enforcement options
Action Our charges excluding VAT (VAT is payable at 20%) Court fee (VAT not payable) Other disbursements
Warrant of Control (instructing a County Court Bailiff) £47 + VAT at 20% (£9.40) = £56.40 £94
Writ of Control (over £600) (instructing a High Court Enforcement Officer (HCEO)) £207 + VAT at 20% (£41.40) = £248.40 £80 Abortive Fee: £75 plus VAT at 20% (£15) payable to the HCEO if they are unable to recover. Total: £90
Attachment of Earnings £207 + VAT at 20% (£41.40) = £248.40 £135
Third Party Debt Order £249 + VAT at 20% (£49.80) = £298.80 £135 Agent’s fees for attendance at hearing (usually £110 plus VAT at 20% (£22) = £132.
Information Order £207 + VAT at 20% (£41.40) = £248.40 £67 Process Server’s Fee (usually £90 plus VAT at 20% (£18) = £108). Oath Fee: £7.00 (VAT not payable) Agent’s fees for attendance at hearing (usually £110 plus VAT at 20% (£22) = £132).
Additional hearing fee Information Order £23 + VAT at 20% (£4.60) = £27.60 N/A
Charging Order £249 + VAT at 20% (£49.80) = £298.80 £135 £40 Land Registration Fee per property (VAT not payable).

The above charges list our standard fees for debt recovery. There are some situations where action may not follow the standard process and additional work may be needed. Where possible, we will offer you a fixed fee for this. It is not possible to provide an exhaustive list of the situations which can arise, but the list below covers some of the most common.

Miscellaneous action (if required)
Action Our charges excluding VAT (VAT is payable at 20%) Court fee (VAT not payable) Other disbursements
Review of any defence filed Minimum review charge of £155 + VAT at 20% (£31) = £186, to be confirmed, dependant upon complexity
Solicitor service of proceedings £60 + VAT at 20% (£12) = £72
Telephone mediation £155 + VAT at 20% (£31) = £186
Tomlin order £259 + VAT at 20% (£51.80) = £310.80 £123
Objection to strike off £60 + VAT at 20% (£12) = £72
Application to transfer to Scotland £264 + £77 + VAT at 20% (£68.20) = £409.20 £119 You will be responsible for the fees and costs of the relevant agent.
Liaising with agents outside of jurisdiction £23 + VAT at 20% (£4.60) = £27.60 per letter / email
Instructing trace agent £57 + VAT at 20% (£11.40) = £68.40, including trace agents fee if for standard trace.

£85 + VAT at 20% (£17) = £102, including trace agents fee if for residential and employment trace.

 Agent’s fee
Land Registry search (England & Wales) £10  + VAT at 20% (£2) = £12 per search
Land Registry Fee (Charging Order) £40
Land Registry search (Scotland) £17 + VAT (£3.40) = £20.40 per search
Instalment monitoring 10% of each instalment plus VAT at 20%
High Court Enforcement Officer (HCEO) payments 8% of the payment received plus VAT at 20%.
General application (by consent / without notice) £60 + VAT at 20% (£12) = £72 £123
General application (on notice) Fee quoted on a case by case basis £313

 

Defended/Complex Actions
Our charge excluding VAT
(VAT is payable at 20%)		 Hearing Fee
(VAT is not payable)		 Agent’s Fee
(VAT is payable at 20%)
Dependent upon value and complexity. Amount Claimed Hearing Fee
Up to £300 £27 Small Claims/Applications £175 – £400  + VAT at 20% (£35 – £80) = £210 – £480, depending upon type of hearing, time allocated and level of agent required.
£300.01 to £500 £59
£500.01 to £1,000 £85
£1,000.01 to £1,500 £123
£1,500.01 to £3,000 £181
£3,000.01 and above £346
Fast Track £619 From £1,342 plus VAT at 20% (£268.40) = £1,610.40
Multi Track £1,175 From £3,303 plus VAT at 20% (£660.60) = £3,963.60

 

Hourly rates for our Debt Recovery Solicitors

Where hourly rates are charged, they will vary depending upon who is involved in carrying out the work.

Status Hourly rate excluding VAT
(VAT is payable at 20%)
Partner £350.00 + VAT at 20% (£70) = £420
Technical Director/Senior Associate £300.00 + VAT at 20% (£60) = £360
Team Supervisor £200.00 + VAT at 20% (£40) = £240

Below is an overview of our insolvency charges.

Insolvency action
Action Our charges excluding VAT (VAT is payable at 20%) Other disbursements (VAT at 20% if payable) Court fee (VAT not payable)
Statutory Demand £310 + VAT at 20% (£62) = £372 Process server’s fee from £85 plus VAT at 20% (£17) = £102
Preparation of Bankruptcy Petition (if debtor is an individual) £516 + VAT at 20% (£103.20) = £619.20 Plus Hearing Agent fee from £100 plus VAT at 20% (£20) = £120
Company Search Fee £42 plus VAT at 20% (£8.40) = £50.40
Preparation of Winding Up Petition (if debtor is a company / partnership) £774 + VAT at 20% (£154.80) = £928.80 Plus Hearing Agent fee from £100 plus VAT at 20% (£20) = £120
Court fee for Insolvency Action £343
Official Receiver’s Deposit – Bankruptcy (if debtor is an individual) £1,500
Official Receiver’s Deposit – Winding Up (if debtor is a company / partnership) £2,600
London Gazette fee (Winding Up only) (if debtor is a company / partnership) London Gazette fee: £80
Attendance at Bankruptcy hearings (per hearing) From £207 + VAT at 20% (£41.40) = £248.40
Attendance at Winding Up Petition hearings (per hearing) From £310 + VAT at 20% (£62) = £372
Administration fee for refund of Official Receiver’s Deposit £108 + VAT at 20% (£21.60) = £129.60

VAT & disbursements

Our fees and some disbursements are subject to VAT at 20%.

Our fixed fees are reviewed annually. The amount of the increase will be equal to the Retail Price Index at that time (as published by the Office of National Statistics or any successor or replacement government department) or 5%, whichever is lower. Fixed fees are rounded up to the nearest £1.

Contact a debt recovery solicitor

Email Philip Roberts
Philip Roberts photo

Philip Roberts

Partner and Head of Debt Recovery

Birmingham, Bristol, Cardiff, London, Manchester, Southampton and Taunton
Phil is a Chartered Legal Executive and Partner in Clarke Willmott’s Debt Recovery team specialising in defended debt recovery litigation and insolvency actions.
View profile for Philip Roberts >
Email Anna O’Reilly
Anna O’Reilly – Debt Recovery Team Manager – Taunton

Anna O’Reilly

Team Manager

Taunton
Anna oversees the set up and workflow for the team’s high-volume contracts and also specialises in the recovery of service charge arrears and ground rent for residential managing agents.
View profile for Anna O’Reilly >

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