I need to write a letter before action. What must it say?

Short answer

A letter before action (LBA) is a formal demand sent before starting a court claim. It must clearly state what is owed, why, and give the other side at least 14 days to pay or respond. Sending one is a pre-action requirement under the Civil Procedure Rules — courts expect it before any claim is issued.

If you skip this step and issue a claim immediately, the court may impose cost penalties even if you win.

1 The rule

The duty to follow pre-action steps before issuing court proceedings is set out in the Practice Direction on Pre-Action Conduct and Protocols, which applies to all civil claims in England and Wales that do not have a specific pre-action protocol.

A well-drafted letter before action gives you a paper trail of when the demand was made. If the matter goes to court, it demonstrates that you complied with the spirit of the pre-action rules and gave the defendant a fair opportunity to pay.

2 What you can do now

1. 1
   Confirm the debt and the amount

   Before writing, calculate the full amount owed: the principal debt, any agreed contractual interest, and statutory late payment interest if the debt is a commercial debt. If you are claiming interest under the Late Payment of Commercial Debts (Interest) Act 1998, state the rate (8% above Bank of England base rate) and the amount as at the date of the letter. Keep the calculation on a separate sheet so it can be updated to the date of any court hearing.

2. 2
   Draft the letter — what it must include

   Your letter must state: (a) the full name and address of both parties; (b) a clear explanation of the facts giving rise to the debt (contract agreed, work completed or goods delivered, invoice issued, non-payment); (c) the sum claimed and how it is calculated; (d) a demand for payment within 14 days (use a specific calendar date, not just "14 days"); (e) bank details for payment; (f) a statement that you will issue a court claim if payment is not received; and (g) your contact details for any queries.

3. 3
   Send it in a way you can prove

   Send by first-class post and keep the certificate of posting (available free from Post Office counters). Also send by email to have a timestamped record. Do not mark the letter "without prejudice" — it must be an open letter that the court can see. Address it to the correct person: for a limited company, address it to the registered office (check at Companies House); for an individual, use their home address.

4. 4
   Wait for the response

   Give the debtor the stated time to pay or to send a substantive reply. If they dispute the debt, acknowledge their response and consider whether their objection has merit. If they do not respond or refuse to pay without a good reason, you may then issue a court claim. Keep copies of all correspondence.

3 When this does not apply

• The debt is already statute-barred (more than six years old under the Limitation Act 1980) — a letter will not revive it, but you should take advice before issuing a claim.
• The debtor is in insolvency proceedings — you should file a proof of debt with the insolvency practitioner rather than pursuing through court.
• The debt is subject to a specific pre-action protocol (such as construction or professional negligence disputes) — use that protocol's letter template instead.

4 Common questions