The costs of debt recovery can vary depending on the circumstance.
Our debt recovery solicitors are specialists that can help you whatever the circumstance. Although we have set fees, there are more complex cases that are disputed that require more time not included in our fixed fee prices. This is outlined to you at the time of instruction or if additional information becomes apparent during the case.
Our costs apply to unpaid invoices which are no disputed and no enforcement action is required.
Prior to establishing action, we offer fixed fees for pre-action.
|Letter before Action||£150.00+VAT (this may be less depending on complexity of the letter)|
|Reviewing response and second letter||£150.00+VAT|
|Preparing final demand letter||£200.00+VAT|
If court action is required, then our fees are as follows:
|Debt||Court Fee||Our Fee|
|Up to £5,000.00||Up to £205.00||£1,000.00 plus VAT|
|£5,001.00 to £10,000.00||£455.00||£1,500.00 plus VAT|
|£10,001.00 to £50,000.00||5% of the claim||£2,000.00 plus VAT|
There are additional hourly rates available for enforcement proceedings. There is a £66.00 Court Fee and £90.00 HCEO fee (if warrant is unsuccessful).
All our fees are plus VAT.
Anyone wishing to proceed with a claim should note that:
- The VAT element of our fee cannot be reclaimed from your debtor.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
What is included in the fees?
Our fee includes:
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default in received, write to the other side to request payment
- If payment is not received within 14 days, providing you with advice on next steps and likely costs
Unfortunately, there are no set timescales, as every recovery is different. We expect a letter demanding payment to be responded to within 7 days if a company and 30 days if an individual. If enforcement action is required then it can take significantly longer.
What is VAT and when is it due?
VAT is chargeable if it meets the following criteria, it must:
- be a supply of goods or services
- be a taxable
- take place in the UK
- be sold by a VAT registered person, and
- be made through business activity.
VAT is applicable at the standard rate, 20%, on our services should the criteria be met. If VAT is due on any disbursements we will inform you prior to agreeing the fee.
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