Where the debtor does not enter a defence to a claim.
- You pay our charge of £5.00 plus VAT whether the debtor pays or not. This charge is not recoverable from the debtor, however for VAT registered businesses, the VAT is recovered in the normal way.
- Where the debtor pays, and there is a business to business transaction we shall add to the total due Late Payment of Commercial Debts compensation and interest. Where the debt has not been recovered we will charge you the Late Payment compensation as our fee, plus VAT. You will keep the interest. The debtor is required to pay the total of:
- Your invoice
- Late Payment Compensation
- Interest
Once we send out the Letter Before Action, we will notify you of the new balance due from the debtor. If you chose to settle for less than the new balance, our fees will still be payable by you.
VAT at the current rate is charged on costs, not fees. VAT is only recoverable from the debtor if you are not VAT registered. If you are VAT registered you recover the VAT in the usual way. You pay the amount shown in the TOTAL column (plus Late Payment compensation if applicable) regardless of whether the debt has been recovered from the debtor at this stage. Costs will be invoiced to you at the end of the month.
WE CAN NOT GUARANTEE RECOVERY FROM A DEBTOR UPON OBTAINING A JUDGEMENT AGAINST THEM.
Debt Amount | LBA £5+ VAT | Court Issue Fee | Fixed Costs on Issue + VAT on costs | TOTAL (plus VAT on costs) |
|---|---|---|---|---|
| £0.00 to £300.00 | £5.00 | £35.00 | £50.00 | £90.00 |
| £300.01 to £500.00 | £5.00 | £50.00 | £50.00 | £105.00 |
| £500.01 to £1,000.00 | £5.00 | £70.00 | £50.00 | £145.00 |
| £1,000.01 to £1,500.00 | £5.00 | £80.00 | £70.00 | £165.00 |
| £1,500.01 to £3,000.00 | £5.00 | £115.00 | £80.00 | £200.00 |
| £3,000.01 to £5,000.00 | £5.00 | £205.00 | £80.00 | £290.00 |
| £5,000.01 to £10,000.00 | £5.00 | £455.00 | £80.00 | £560.00 |
| £10,000.01 to £200,000.00 | £5.00 | 5% of the value of the claim | £100.00 | £715.00 |
| More than £200,000.01 | £5.00 | £10,000.00 | £100.00 | £10,100.00 |
Where the debtor does not respond to the Court claim form we will enter Judgement. Our fixed costs are recoverable from the debtor (save for the VAT):
Debt Amount | Fixed Costs on Entering Judgment + VAT on costs | Fixed costs on Enforcement + VAT | Court Fees | TOTAL |
|---|---|---|---|---|
| £0.00 to £600.00 | £50.00 | (£2.25 of which you can recover) | £100.00 | £124.25 |
| £600.01 to £5,000.00 | £22.00 | £51.75 | £60.00 | £133.75 |
| Over £5,000.01 | £30.00 | £51.75 | £60.00 | £141.75 |
If enforcement of the debt is required
We will upon receipt of a Judgment, automatically instruct the enforcement officer (or Court bailiff if the debt is under £600.00) to collect the debt.
If the enforcement officer is unsuccessful we will charge you an abortive fee of £75.00 plus VAT.
Other methods of enforcement
Other methods of enforcement are available on request. This includes a third party debt order, attachment of earnings of earnings or charging order on the debtor’s property.