What is a statutory demand, and when should I use one?
The short answer
Only for undisputed debts. A statutory demand is a form you serve on a company. If it neither pays nor agrees to pay a debt of more than £7505 within 21 days1, the Insolvency Act treats it as unable to pay its debts5, and a winding-up petition can follow. It is not a court document8, so no judgment comes from it, and GOV.UK lists no fee for it1.
England and Wales only. WolfX is software, not a law firm.
What you can add
A £6,400 debt: what a petition costs if the demand is ignored
Say a company owes you £6,400 on an invoice that fell due on 31 July 2026, and it has ignored every reminder. On 2 November 2026 you leave a statutory demand at its registered office. The 21 days end on 23 November 2026. The demand is not a court document and no fee is listed for it. If the company stays silent, a petition costs this:
A court claim for the same £6,400 costs a £45511 court fee, so a petition costs £2,497 more to start. The deposit is security for the official receiver's fee10. It comes back, less £50, if you withdraw the petition or the court dismisses it, and after a winding-up order except for any part the company's assets cannot cover. You might get the fees back9 if the company can afford to repay them.
The road ahead
Five steps, then a choice.
Step 1: Check the debt is clear
It must be a fixed sum, already due, more than £7505 and, usually, under 6 years old1. Then ask the one question that decides it: could the company give a real reason it does not owe this? If yes, stop here: a disputed invoice has its own page.
Step 2: Check the company and its address
Look the company up on the Companies House register. You need its registered office, and you need to see that no administrator or liquidator is in place. How to check a company is on its own page.
Step 3: Fill in form SD 1
Use form SD 12. The rules6 say it must give the registered office, the sum and what it is for, the 21 days, a named person the company can contact (with their address and phone number), and a date and signature.
Keep it to the unpaid invoice. Any interest or other charges need their own line, with the rate and the reason6, and only what has built up so far.
Step 4: Leave it at the registered office
The Act says the demand must be left at the company's registered office5. Hand it in yourself or use a process server, and keep a copy with proof of the day, the time and that it arrived3.
If no one there will take it, put it through the letterbox3 at the registered office: that still leaves it there5. Post alone may not count. The note below is optional: GOV.UK says no separate letter is needed2.
Step 5: Wait 21 days from the day you left it
The company can pay, agree to pay, or apply to the court for an injunction6 to stop you presenting a petition. A demand served on a company cannot be challenged4 the way an individual's can, so there is no application to set it aside.
If the court sides with the company, you may be ordered to pay its costs. The general rule is that the loser pays12, the Insolvency Rules apply it to insolvency cases7, and the court can order differently.
Step 6: Choose your next move
After 21 days of silence you can ask the court to wind the company up. It costs £352 in court fees plus a £2,600 deposit9, and you should apply within 4 months3 of serving. The petition has its own page.
A court claim for the same £6,400 costs £45511. A winding-up shares what is left among all the creditors, and you might not get all or any9 of it.
A letter you can copy
Covering note to leave with the demand
Optional. The form is the demand, and GOV.UK says no separate letter is needed. Leave this with it so the right person reads it and the dates are on record.
Tap a highlighted gap to see what goes in it.
Leave it with the demand, not instead of it. The demand must name a person the company can contact, so use the same name and number here. Keep a copy of both, and the proof of the day and time you left them.
When not to bother
When it isn't worth it
- The debt is disputed. If the company has a real reason not to pay, it can ask the court to stop a petition, and you may pay its costs. If part is disputed, demand the rest and take the remainder to court.
- The company has nothing to wind up. A petition is a bet on its assets: your £2,600 deposit is security for the official receiver's fee10 and pays it if the assets fall short. Read its filed accounts first.
- A liquidator or administrator is already in. Your claim goes to them, not to the company. Liquidation and administration each have their own page.
- It is £750 or less. The Act needs more than £7505. A court claim for £750 costs a £70 court fee11.
- The customer is a sole trader, a partnership, or in Scotland or Northern Ireland. Each needs another form2 or law; bankruptcy needs £5,000 or more3.
The Wolf's note
A statutory demand is a question with a date on it. A payment, an offer, a reason in writing or silence: each one points to a different next move. Read which one came back before you put up £2,952 on a petition.
Mr. Wolf · the AI inside WolfX
What comes next
Your next move
What is a winding-up petition, and should I use one to get paid?
Rarely. A winding-up petition asks the court to close a company and share what is left among its creditors.
6 min read
Before you chase
How do I check if a company is insolvent or about to go under?
Three searches, ten minutes and £6: Companies House, The Gazette and the judgments register.
6 min read
If they go under
The company says it's closing down. What should I do right now?
Today. If a client says it is closing down or going out of business, check Companies House and the Gazette for which kind, then write with the sum worked out.
8 min read · Letter included
Don't want to do this yourself?
The Wolf does every step for you. He works out the sums, writes the letters and keeps track of every date. Nothing goes without your yes.