The Pre-Action Protocol for Debt Claims applies when a business claims a debt from an individual, including a sole trader. It requires a letter of claim with specific details, the protocol's Information Sheet, Reply Form and Financial Statement, and at least 30 days for the debtor to respond.
It does not apply when both parties are companies — then the general Practice Direction on Pre-Action Conduct applies, which is less prescriptive.
Example
A web designer owed £1,200 by a sole-trader plumber must give 30 days and enclose the reply forms before suing.