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Occasionally, you may not be able to receive payment for work you have done either as an employee or as a business (company or self-employed). In the UK, you have the opportunity to claim such payments online.
In this article, we will outline this process in England as well as what you need to know before you claim.
CHAPTERS
• How to submit your claim
• Court fees
• Interest claim
• What happens after you submit your court claim
• Hearing
How to submit your claim
Two important points you must know before:
You cannot claim money from someone when they are officially under "Breathing Space" scheme within the set time limit.
Sometimes when dealing with claims, civil mediation services may be more affordable as well as faster in resolving such issues.
IMPORTANT: In Scotland and Northern Ireland the process varies.
The process is simple especially for specific amounts less than £10,000. You can go online and follow the steps to fill in the relevant form. Alternatively, you can download the form (N1) and send it to the following address:
County Court Money Claims Centre
PO Box 527
Salford
M5 0BY
If the debtor refuses to pay, you may need to attend a court hearing. Direct court claim for the debt can be processed through Country Court Judgments only if:
The debtor does not respond to the official claim or
They acknowledge the debt but for some reason do not pay
Court fees
You can find the fees HERE. If you fill in the paper form, you must include in your claim application a letter where you must ask for details for payment by card.
Interest claim
Interest claims are quite common especially in case of claims between businesses. The interest rate is 8% for claims under commercial transactions scheme (claims between businesses) and the set interest rate of the Bank of England can also be additionally claimed.
EXAMPLE
Your claim is £1,000, so the annual interest is £80 (1000 x 0.08). To calculate, you need to divide the interest with 365 and then multiply with the number of days of delayed payment. For example, if the days of delayed payment are 50, you multiply 50 with the daily interest which is 22 cents (80 / 365 = 0.22) so the interest required is £11 (50 x 0.22).
If it a claim under commercial transactions scheme and the interest of the Bank of England is 0.5%, then the annual interest is £85 (1000 x 0,085) and the rate for 50 days will be £11.50 (50 x 0.23). The daily rate will be 0.23, which is the result of 85 / 365.
ATTENTION: If there is a contract between two parts setting the interest and commercial rates, the calculation must be done based on the percentages set by the contract rather than 8%.
What happens after the claim application
If you received your payment, you simply notify all parts involved. For claims for less than £10,000, if you applied online, you can notify the HMRC electronically or by phone on 0300 123 7050. If your claim was for more than £10,000, you can call 0300 123 1057 or contact them on ccbc@justice.gov.uk.
Important: The telephone lines are open between 8.30 am and 5 pm.
If you filled in a paper claim application, you need to contact the country court you applied with.
If you have not received your payment, the court hearing continues and you may be required to submit additional evidence. In this case, you will be asked to pay additional court fees so that the case can proceed and you may be advised to require official mediation services.
The hearing
If you claim less than £10,000 your hearing will be in the judge’s room or in a court room. If you claim more there may be a more official hearing.
The decision is made on the same day and will be posted to your address. If you win the case, the court will order that the individual or the business pay you the money you claimed and there are various ways that the court can use to receive your payment if the order is ignored.
If you lose the case, you have the right to appeal. Alternatively, first you can consult Citizens Advice.
IMPORTANT: You will need to pay court fees for the application to receive your payment through the court if the debtor does not do it of their own volition.If you win the case, you can ask the court to send a bailiff to receive the payment. This is called «warrant of control».
Last but not least
In any case, you are advised to try to discuss the issue first as you may save money and time.
In terms of the stages of making a claim to receive your payment (let's say for an invoice), when it has been delayed, you should try to find out unofficially the reason for the delay, for example by making a call. If you believe that the reason for the delay is of no concern, you can send an official warn by email and a letter. If you receive no reply, you should warn again that you will take the legal course. If you receive no reply again, it is up to you whether you will claim your payment through the court. It is recommended that you seek legal advice because each case is unique and the experts’ opinion is crucial.
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Translated / Edited: Apostolia Nestoratou
© 2021 UPECO LTD
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ATTENTION!
This article intends to give only a general informative picture and should not, in any case, be taken as a rule. It is strongly recommended to seek a full and professional guidance specifically for your circumstances before making any decisions.
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