About this calculator
The Statutory Demand Checker helps creditors and debtors understand whether a debt appears to meet basic statutory demand thresholds and deadline risks. It is useful before sending a demand, responding to one, or deciding whether urgent advice is needed. It focuses on debt amount, debtor type, security, interest, costs, and the short response window. Use this expanded guide when you need more than a quick result. It explains the assumptions behind the Statutory Demand Checker, the records to gather, and the decisions the estimate can support. It is especially useful for creditors, debtors, directors, sole traders, and advisers checking insolvency demand thresholds and deadlines. The strongest use of the page is scenario comparison: change one input at a time, compare the output, and keep a note of which assumption changed.
Statutory Demand Checker calculation method
The checker calculates the net unsecured debt after any security, adds interest and costs where entered, and compares the result with the threshold used for individuals or companies in the calculator logic. It also highlights response deadlines, including the 21-day demand period and shorter set-aside urgency where relevant. The calculator result depends on the quality of the inputs and on the rule set or formula selected in the calculator above. For practical use, treat the output as a structured estimate: start with the core inputs, review the main outputs, then test the decision points that matter most to your situation. Key decisions include whether the amount threshold appears met, whether urgent advice is needed, whether a dispute or security issue exists.
- gross debt = principal + interest + costs
- net unsecured debt = gross debt - security value
- threshold check = net unsecured debt >= debtor-type threshold
- better estimate = accurate inputs + correct rule set + realistic assumptions
- scenario difference = revised result - original result
How to use the Statutory Demand Checker
- Select whether the debtor is an individual or company.
- Enter the debt amount, interest, costs, and any security.
- Record the date the statutory demand was served.
- Check whether the threshold is met after security.
- Review the response and set-aside deadline warnings.
- Identify any dispute, counterclaim, or payment evidence.
- Seek debt or legal advice quickly if a demand has been served.
- Gather the main inputs first: debtor type, principal debt, interest.
- Check supporting records such as demand copy and service evidence before relying on a final number.
- Enter one realistic scenario first, using conservative assumptions where the future is uncertain.
- Review the main outputs: net unsecured debt, threshold flag, response deadline.
- Run at least one alternative scenario so you can see which input changes the answer most.
- Compare the result with GOV.UK statutory demand guidance, insolvency rules, or qualified debt advice or the relevant contract, bill, statement, or professional document.
- Keep the calculation date and assumptions with your notes so you can revisit the estimate when rates, rules, or circumstances change.
Worked example
Company debt above threshold
Input: Company debt GBP 2,000, no security, no dispute entered.
Calculation: Net unsecured debt remains GBP 2,000 and is compared with the company threshold used by the checker.
Result: The checker flags that the debt appears above the basic threshold, but does not decide whether a demand is appropriate.
Secured debt scenario
Input: Debt GBP 8,000 but security is valued at GBP 5,000.
Calculation: Net unsecured debt is GBP 3,000.
Result: For an individual debtor, the amount may fall below the basic threshold used by the checker.
Disputed invoice scenario
Input: A debtor has written evidence disputing the quality of work before the demand was served.
Calculation: The calculator cannot decide the dispute, but the profile flags it as a major issue.
Result: The debtor should get advice quickly and keep the correspondence.
A statutory demand is a serious step
Statutory demands are not normal reminder letters. They are connected to insolvency procedures and should not be used casually where a debt is genuinely disputed, secured, or unsuitable for the process.
For debtors, the short timescales mean that waiting can remove practical options. Record the service date and get advice quickly if you intend to dispute the demand.
What to check before relying on the result
A useful Statutory Demand Checker result starts with the same evidence you would use if you were checking the answer manually. The calculator can organise the arithmetic, but it cannot know whether a payslip is final, a bill is estimated, a quote excludes fees, or a personal circumstance has changed since the last statement.
Before making a decision, compare the calculator result with the source document that controls the real outcome. For this topic, that usually means checking GOV.UK statutory demand guidance, insolvency rules, or qualified debt advice. If there is a difference between the calculator and an official statement, contract, assessment, or professional advice, treat the official document as the stronger source.
- demand copy
- Use this as supporting evidence for the calculation. If it is out of date, estimated, or based on a different period, the calculator output may look precise while still being wrong for the decision.
- service evidence
- Use this as supporting evidence for the calculation. If it is out of date, estimated, or based on a different period, the calculator output may look precise while still being wrong for the decision.
- invoice or contract
- Use this as supporting evidence for the calculation. If it is out of date, estimated, or based on a different period, the calculator output may look precise while still being wrong for the decision.
- payment history
- Use this as supporting evidence for the calculation. If it is out of date, estimated, or based on a different period, the calculator output may look precise while still being wrong for the decision.
- dispute correspondence
- Use this as supporting evidence for the calculation. If it is out of date, estimated, or based on a different period, the calculator output may look precise while still being wrong for the decision.
Inputs that usually change the answer
The most important input is not always the largest number on the form. Sometimes a date, threshold, percentage, eligibility flag, or timing assumption changes the result more than the headline amount. This is why scenario testing is more useful than a single calculation.
| Input | Why it matters | What to double-check |
|---|---|---|
| debtor type | It feeds directly into the estimate or changes which rule is applied. | Check the period, units, eligibility, and whether the figure is final or estimated. |
| principal debt | It feeds directly into the estimate or changes which rule is applied. | Check the period, units, eligibility, and whether the figure is final or estimated. |
| interest | It feeds directly into the estimate or changes which rule is applied. | Check the period, units, eligibility, and whether the figure is final or estimated. |
| costs | It feeds directly into the estimate or changes which rule is applied. | Check the period, units, eligibility, and whether the figure is final or estimated. |
| security value | It feeds directly into the estimate or changes which rule is applied. | Check the period, units, eligibility, and whether the figure is final or estimated. |
How to interpret the output
The output should be read as a decision aid, not just a number. For Statutory Demand Checker, the useful question is often what the result means for timing, affordability, eligibility, comparison, or next steps.
- net unsecured debt
- Use this output alongside the other results rather than in isolation. A monthly amount, percentage, date, or payback figure can look acceptable until fees, timing, evidence, or eligibility conditions are added.
- threshold flag
- Use this output alongside the other results rather than in isolation. A monthly amount, percentage, date, or payback figure can look acceptable until fees, timing, evidence, or eligibility conditions are added.
- response deadline
- Use this output alongside the other results rather than in isolation. A monthly amount, percentage, date, or payback figure can look acceptable until fees, timing, evidence, or eligibility conditions are added.
- set-aside warning
- Use this output alongside the other results rather than in isolation. A monthly amount, percentage, date, or payback figure can look acceptable until fees, timing, evidence, or eligibility conditions are added.
Scenarios worth comparing
A single estimate is a snapshot. A better approach is to save a base case, then adjust one assumption at a time. This shows whether the result is stable or whether a small change in timing, rate, usage, income, or cost creates a very different answer.
| Scenario | Change one assumption | What the comparison shows |
|---|---|---|
| Base case | Use the best current evidence. | Shows the result you would expect if nothing important changes. |
| Conservative case | Use lower income, higher cost, slower growth, or less favourable timing. | Shows whether the decision still works with less optimistic assumptions. |
| Improved case | Use the realistic upside, such as lower cost, better rate, higher usage, or stronger evidence. | Shows the potential benefit without treating it as guaranteed. |
Common mistakes and edge cases
Most errors come from using the right formula with the wrong assumption. Dates can be counted differently, rates can change, official thresholds can move, and real bills or contracts often include conditions that a simple calculator cannot infer automatically.
- Deadlines are short.
- Check this point before using the estimate for a payment, claim, purchase, application, employment decision, or health-related decision.
- Disputed debts need care.
- Check this point before using the estimate for a payment, claim, purchase, application, employment decision, or health-related decision.
- Security can change eligibility.
- Check this point before using the estimate for a payment, claim, purchase, application, employment decision, or health-related decision.
- Improper use can be challenged.
- Check this point before using the estimate for a payment, claim, purchase, application, employment decision, or health-related decision.
Next steps after calculating
Once you have a result, write down the key assumptions and compare them with GOV.UK statutory demand guidance, insolvency rules, or qualified debt advice. If the number affects a deadline, tax return, benefit claim, employment issue, medical question, finance agreement, or major purchase, use the calculator as preparation for a more formal check.
For lower-stakes use, the next step may simply be comparing two or three scenarios. For higher-stakes use, the next step should be checking the official guidance, speaking to the relevant organisation, or getting qualified advice before acting.
Common mistakes and edge cases
- A genuinely disputed debt may make a statutory demand inappropriate.
- Security can reduce the net unsecured amount below the threshold.
- Individuals and companies use different thresholds and procedures.
- Service date disputes can affect the deadline calculation.
- Deadlines are short.
- Disputed debts need care.
- Security can change eligibility.
- Improper use can be challenged.
Limitations and advice boundary
This checker is general information only and is not insolvency or legal advice. Statutory demands have serious consequences. This is general information only and is not insolvency or legal advice. The calculator is designed to support understanding and planning, but it cannot verify documents, predict future rule changes, or account for every exception. Use it as an estimate and check the official source before acting where the result matters.
- Use the result as an estimate and keep the source documents used for the inputs.
- Check current official guidance, contracts, bills, statements, or professional advice where the result affects a real decision.
- Run a conservative scenario as well as the main scenario where costs, dates, rates, eligibility, or behaviour may change.
- Check GOV.UK statutory demand guidance, insolvency rules, or qualified debt advice for current rules, rates, definitions, and eligibility where relevant.
- Do not rely on a single scenario where income, costs, dates, rates, usage, or health circumstances may change.
- Keep records of the inputs used so that the estimate can be reviewed later.
Frequently asked questions
Does meeting the threshold mean bankruptcy or winding up will happen?
No. It only suggests a basic amount condition may be met.
What if I dispute the debt?
Get advice immediately. A genuine dispute can be very important.
Can I ignore a statutory demand?
No. The response periods are short and consequences can be serious.
Can a statutory demand be used for any unpaid invoice?
No. It is not suitable where the debt is genuinely disputed or otherwise inappropriate.
What is security?
Security is an asset or legal protection that reduces the unsecured part of the debt.
What should I do first after receiving one?
Record the service date, gather documents, and get advice immediately.
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