What is "without prejudice", and when do I use it?
The short answer
Only for offers. Talks to settle a dispute are usually held without prejudice, which means the court hears what was said only in very restricted circumstances1. Put the words on an offer to settle a real dispute. Leave them off your demand and your letter before action, which the court expects to see2.
England and Wales only. WolfX is software, not a law firm.
What you can add
An £8,400 invoice and an offer of £7,600
Say you invoiced another business £8,400, due on 31 July 2026. They dispute £1,400 of it. On 14 October 2026 it is 75 days late, and invoices that went late in the second half of 2026 carry interest at 11.75%. You would take £7,600 now: the £7,000 they do not dispute, and £600 of the £1,400 they do.
An offer of £7,600.00 in full and final settlement gives up £1,072.81 of it. The court route costs a £455 issue fee, then a £346 hearing fee8 if it reaches trial. Small claims trials took a median of 41.0 weeks9 from issue in April to June 2026.
The road ahead
Six steps. All free.
Step 1: Check there is a real dispute
The words protect talks to settle a dispute, so there must be one: they have queried the invoice, or part of it. If they have simply gone quiet, send an open demand instead.
Step 2: Keep your demand open
Send your demand, and later your letter before action, with no label on them.
The court expects to see that you wrote with the details and gave time to reply2: 14 days for a company, 30 days for a sole trader3.
Step 3: Choose the label
Open means the judge can see it: your demand, your letter before action, your replies. Without prejudice means the judge usually cannot: an offer to settle.
Adding "save as to costs" keeps the offer from the judge on the claim itself, but it can still be drawn to the court's attention6 when the court decides who pays costs.
Step 4: Name one sum and one date
Start from the full claim: the invoice, interest at 11.75% a year12 and the fixed sum11. Pick the one sum you would take and the day the offer ends.
On a claim of £10,000 or less, which normally goes to small claims, Part 36 offers do not apply5 and legal costs are limited, so the choice is money now against the wait. A rejected offer is not unreasonable by itself5, but the judge may weigh it.
Step 5: Send the offer on its own
Use the letter below as a separate email, headed without prejudice. One sum, one date, the words in full and final settlement. Do not copy in your demand.
Step 6: Get the answer in writing
If they accept, keep their written yes. Your letter says nothing is settled until the money arrives: if it has not reached you by the offer's end date, the offer has ended and your open demand carries on.
If they suggest mediation, answer. Silence or a refusal2 might be considered unreasonable by the court and could cost you.
A letter you can copy
Offer to settle a disputed invoice
Send it as its own email, after your open demand has gone, when you would take less to end a real dispute.
Tap a highlighted gap to see what goes in it.
Send it by email as a new message, not a reply to your demand, so the two do not share a page. Keep a copy of both with the invoice, and keep their reply if they accept.
When not to bother
When it isn't worth it
- There is no dispute, the invoice is simply unpaid. Send an open demand, not an offer: start with what to do first, then a final demand.
- The sum is small and the client is worth keeping. One call and one email will usually do, with no label and no letter.
- Your claim is already in the court's mediation service. Make your offer there. Mediation is confidential, and you cannot mention what happened in it in court7.
- Your claim is over £10,000. Part 36 is the court's formal offer scheme: it counts as without prejudice except as to costs4, and can start before you issue. Setting one up is where a debt-recovery solicitor earns the fee.
- Your customer is in Scotland or Northern Ireland. The route differs there, and this page covers England and Wales only.
The Wolf's note
An offer buys speed with some of your money. The demand is the paper a judge may read. Keep them in separate messages, and let them answer the offer by its date.
Mr. Wolf · the AI inside WolfX
What comes next
Your next move
Should I accept less in "full and final settlement"?
Only on your terms. In a small claim, turning down an offer is not, of itself, unreasonable behaviour, but treat any deal you agree as binding.
7 min read · Letter included
My client disputes my invoice. What happens next?
The disputed part waits.
6 min read · Letter included
Put it in writing
What is a letter before action, and how do I write one?
A formal last letter before a court claim, and you can write it yourself.
7 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.