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Statements of Costs: A Complete Guide to Preparation, Service and Assessment

When a case concludes or a hearing ends, the question of costs is never far behind. In civil litigation across England and Wales, the rules require parties seeking to recover their legal expenses to provide a clear breakdown of their claim. 

A statement of costs, typically produced using Form N260, tells the court and the opposing party what hours were spent, the hourly rates charged, the grade of fee‑earner involved, any disbursements, counsel’s fees and VAT. 

Because statements of costs underpin summary assessments and influence detailed assessments, getting them right is critical. This guide explains what a statement of costs is, when you need one, what must be included, how we at Partners In Cost can help and what happens if it is served late. It also distinguishes between summary and detailed assessment, explains how to challenge an opponent’s statement and answers common questions.

This guide reflects the current rules under CPR Part 44 and Practice Direction 44 paragraph 9.5, as well as recent Practice Notes and case law. 

What is a statement of costs?

A statement of costs is a written schedule setting out the legal costs a party seeks to recover when asking the court to carry out a summary assessment. It is commonly associated with Form N260, the standard template issued by HM Courts and Tribunals Service, and provides the court and the other party with a clear breakdown of the costs being claimed.

The statement should follow Form N260 as closely as possible and contain sufficient information for the court to consider whether the costs incurred are reasonable and proportionate. Although interim and trial variants, N260A and N260B, have previously been introduced, the traditional N260 remains the standard form in widespread use.

When do you need a statement of costs?

A statement of costs is generally required where the court is expected to carry out a summary assessment. The judicial guidance on summary assessment indicates that, as a general rule, costs will usually be assessed at the end of:

• Fast-track trials, normally involving hearings lasting no more than one day.
• Interim hearings, including applications and case management conferences.
• Hearings lasting a day or less in multi-track claims, such as hearings dealing with preliminary issues or directions.

For longer or more complex cases, the court will generally order a detailed assessment, with costs subsequently assessed under CPR Part 47 rather than determined at the end of the hearing.

Statements of costs may also be required in certain specialist proceedings depending on the relevant court or tribunal rules, so it is important to check the procedural requirements that apply to the particular matter.

What must a statement of costs include?

A statement of costs needs to give the court sufficient detail to understand how the costs claimed have been incurred and to assess their reasonableness and proportionality. This will usually include:

• Fee earners and time spent – identifying each fee earner, their grade and the hours worked on the matter, with an appropriate breakdown of the work undertaken.
• Hourly rates – stating the rate claimed for each fee earner. Where rates exceed the applicable Guideline Hourly Rates, there should be a clear justification, such as the complexity of the matter, specialist expertise or urgency.
• Disbursements – setting out relevant expenses separately, including court fees, expert fees, transcripts and travel costs, together with sufficient detail to allow their reasonableness to be considered.
• Counsel and advocacy fees – providing details of the fees claimed for counsel or other advocates, including relevant preparation and attendance.
• Hearing costs – including appropriate solicitor or costs lawyer time spent preparing for and attending the hearing.
• VAT – applying VAT where appropriate and ensuring it is treated correctly in relation to fees and disbursements.

The statement should be supported by accurate time records and details of the relevant expenditure. Where there have been separate interim applications, additional statements may be required depending on the circumstances and any directions given by the court.

Form N260 explained

Form N260 is the standard template for statements of costs on summary assessment. It is divided into sections:

Part 1 (Solicitors’ charges and disbursements) – this section lists the hours spent by each fee earner, their hourly rates, and the disbursements. It also provides for VAT.

Part 2 (Counsel’s fees) – here you insert counsel’s brief fee, refreshers (for multi‑day hearings) and any conferences. Identify counsel’s call and whether VAT is charged.

Certification – the form concludes with a signed statement of truth certifying that the costs claimed do not exceed the sums payable by the client to their solicitors.

Two alternative forms, N260A (Interim application costs) and N260B (Trial costs), were introduced during the PD51X pilot but have not been widely adopted. Most practitioners continue to use the original N260. Regardless of the form used, the essential information remains the same.

Official versions of the forms can be found on GOV.UK:

• Form N260 – Statement of costs (summary assessment)
• Form N260A – Interim application costs
• Form N260B – Trial costs

Where a hearing is conducted in the Business and Property Courts at the Rolls Building, a Practice Note from the Chancellor of the High Court provides additional guidance on summary assessments, including when electronic statements may be used. Practitioners should refer to the Practice Note for specific requirements in those courts.

Filing and serving the statement of costs

Timing is critical when preparing a statement of costs. As a general rule, the statement should be filed with the court and served on the other party at least 24 hours before the hearing, although in practice many courts expect closer to one clear working day, and sometimes up to 48 hours, to allow adequate time for review. Serving the statement earlier than the minimum requirement wherever possible helps reduce the risk of objections and supports a smoother summary assessment on the day. Always check the minimum requirement for your particular circumstances. 

Where hearings are listed at short notice, the statement should be prepared and served as soon as practicable, with copies available at the hearing if required. Electronic filing and service are commonly accepted, particularly for remote hearings, but local court guidance should always be checked. Although earlier pilot schemes introduced alternative formats such as N260A and N260B, these are no longer widely used, and statements should instead follow the structure of the standard Form N260 and be presented clearly to assist the court during assessment.

What happens if a statement of costs is served late?

A late or defective statement of costs can have serious consequences. Courts expect parties to comply with timing requirements, and where statements are served too close to a hearing, the court may decline to assess costs summarily and instead direct the matter to a detailed assessment, or even disallow costs altogether, as occurred in cases such as Kuznetsov, R (On the Application Of) v London Borough of Camden [2019] EWHC 3910 (Admin) (21 November 2019) 

One of the court’s primary concerns is whether the opposing party has had a proper opportunity to review and respond to the statement. A statement served shortly before or at the hearing may deprive the other party of that opportunity, which can lead the court to adjourn the assessment or postpone consideration of costs altogether. Even where the court proceeds with an assessment, late service can influence how confidently the judge approaches the figures claimed.

Summary assessment vs detailed assessment

It is important to understand the difference between a summary assessment and a detailed assessment, because the court’s approach and the documents required differ.

Summary assessment is a swift, on‑the‑spot evaluation of the costs that should be paid, usually conducted at the end of a fast‑track trial or interim hearing. The judge considers the statement of costs and any objections and makes a costs order there and then. The focus is on proportionality and reasonableness; the judge will not undertake a line‑by‑line breakdown but will look at the overall picture. The N260 is central to this process because it provides the necessary breakdown to assist the judge.

Detailed assessment, by contrast, is a more exhaustive process under CPR Part 47. It is used after multi‑day trials or in complex cases where the costs are substantial and cannot be dealt with summarily. The receiving party prepares a bill of costs, which is a much longer document setting out each item of work, the time spent and the costs claimed. The paying party may serve points of dispute, and a costs judge assesses the bill line by line. Detailed assessments can be time‑consuming and expensive, but they provide greater scrutiny of each item.

Understanding whether your case will be summarily assessed or subject to detailed assessment helps you plan the level of detail needed in your cost documentation and ensures your statement of costs is proportionate to the hearing.

Can you challenge the other side’s statement of costs?

Yes. Parties are entitled to scrutinise and challenge an opponent’s statement of costs. If you believe the hours claimed are excessive, the hourly rates are too high, or the disbursements are unreasonable, you should raise objections. At a summary assessment hearing, you can highlight specific concerns, suggest reductions and argue that certain items are disproportionate. It is helpful to have a copy of the Guideline Hourly Rates to hand, along with any supporting evidence (e.g., comparable quotes for expert fees).

If the judge proceeds by detailed assessment, you can file points of dispute under CPR 47.9. These should be specific, identifying the items challenged and the basis for the challenge. 

Preparing a statement of costs: how PIC can help

Preparing a statement of costs is not simply an administrative exercise. The way costs are presented can influence whether the court carries out a summary assessment immediately or directs the matter to detailed assessment, and it can affect the level of recovery achieved.

A compliant statement should reflect the work carried out, the proportionality of the time claimed, the appropriate allocation of fee earners and the correct treatment of disbursements, counsel’s fees and VAT. Small drafting issues or timing problems can result in reductions or delay recovery altogether.

At PIC, we regularly support solicitors and litigation teams in preparing statements of costs for interim application hearings and fast-track trials (where fixed costs are not in play). Our role typically includes reviewing time records, ensuring the statement reflects the structure expected by the court, checking hourly rates against guideline levels and presenting the costs clearly so they can be assessed efficiently on the day.

We also assist when time is limited before a hearing or when statements need to be prepared alongside wider costs management work. Early involvement helps ensure statements are served in time and reduces the risk of avoidable objections from the opposing party.

If you are preparing for a hearing where costs are likely to be assessed summarily, engaging a specialist costs team can make the process smoother and improve the prospects of your client recovering costs promptly.

Common mistakes to avoid

• Under‑describing the work. Vague descriptions such as “various correspondence” or “miscellaneous research” make it difficult for the court to assess reasonableness. Provide enough detail to show the nature of the work and its relevance.
• Failing to allocate work appropriately. Having partners perform routine tasks can prompt criticism. Delegation to junior fee earners saves costs and demonstrates a more proportionate approach.
• Omitting disbursements or VAT. Forgetting to include disbursements or VAT in the statement can lead to shortfalls that cannot be recovered later.
• Missing the deadline. Serving the statement late risks the court refusing to assess costs or making adverse cost orders. Build in time for review and unexpected delays.
• Relying on historic practice notes. The PD51X pilot scheme has ended. Ensure your statement reflects the current legal framework and practice directions.

Frequently asked questions (FAQ)

Do I have to use Form N260?

It is strongly recommended. PD 44 says the statement should follow Form N260 as closely as possible. Using the form ensures you include all necessary information and assists the judge. Alternative forms (N260A/B) exist but are not widely used.

When must a statement of costs be served?

This varies depending on whether you are dealing with a Fast Track trial or other short hearing. Always check PD 44 9.5. 

What happens if it is late?

The court may decline to assess costs summarily and order a detailed assessment, delaying recovery. In some cases, the court may impose cost penalties. Always serve on time.

Can the court still summarily assess costs if the statement is late?

The court has discretion. It may proceed if the opponent suffers no prejudice, but it is more likely to postpone the assessment or make an adverse order. Timeliness is therefore crucial.

Can I challenge the other side’s statement of costs?

Yes. You can object to excessive hours, high hourly rates, unnecessary disbursements or disproportionate costs. Raise objections at the hearing or in points of dispute if the matter goes to a detailed assessment.

Do I have to follow the Guideline Hourly Rates?

The GHRs are not binding but are widely used, especially on summary assessment. Courts expect explanations for rates significantly above the guidelines, which must, of course, not exceed the rate payable between solicitor and client. Factors such as specialist expertise, urgency or geographical considerations may justify higher rates.

Need help preparing or challenging a statement of costs?

Preparing a comprehensive, compliant and persuasive statement of costs can make the difference between swift cost recovery and a protracted, detailed assessment. Likewise, challenging an unreasonable statement requires careful analysis and knowledge of current rules. At PIC, our costs specialists can help you prepare a clear statement, ensure it is filed and served on time, and maximise your chances of recovering your costs. We also advise on challenging an opponent’s statement and/or navigating detailed assessment proceedings.

Get in touch today to speak to one of our costs specialists about your case. We’re here to help you navigate the complexities of cost recovery and protect your bottom line.

Adrian Hawley 07.09.2026