Form N242 UK: Notice of Payment Into Court Guide
We're not a law firm — we help you find the right legal support. For advice on your situation, speak to a legal adviser or find a solicitor.
When a party pays money into court following a court order, the other side and the court itself need to be told about it properly. That is where Form N242 comes in. It is the notice used to confirm that a payment has been made under an order of the court, where the paying party does not want the money treated as satisfying the claim.
If you are dealing with litigation and have been ordered to pay funds into court, getting this notice right matters. This guide walks through when Form N242 is appropriate, what information it captures, how it differs from its sister form N242A, and the practical steps around sending the money to the correct place. If you want to talk through your situation before acting, an experienced legal adviser can help.
What this document is
Form N242 is the court's standard notice used to record that a party has paid money into court pursuant to an order, in circumstances where the payment is not being made in full or partial satisfaction of the claim. It sits within the framework of Part 37 of the Civil Procedure Rules, which deals with miscellaneous provisions about payments into court.
The form serves a simple but important function: it creates a written record confirming the payment, identifies the parties and the claim, and notifies the other side that the money has been lodged. This matters because a payment into court under a court order has different consequences from a Part 36 offer or a payment made in satisfaction of a claim.
If the payment were being offered to settle, a different form (N242A) would be used instead. Using the correct notice keeps the status of the money clear and avoids confusion about whether the claim has been resolved.
How to use this document
- Confirm which notice you need. Check the court order carefully and consider whether the payment is being made to comply with an order only, or whether you intend it to satisfy the claim. Form N242 is used where the payment is not in satisfaction. If it is intended to settle, Form N242A under Part 36 is the correct route instead.
- Gather the claim details. You will need the claim number, the full names and addresses of the claimant and defendant, and any reference numbers being used by each party or their solicitors. Having the sealed order or judgment that required the payment to hand is essential, as a copy must accompany the payment.
- Complete and sign the form. Fill in every section of Form N242 accurately. It can be signed by the claimant, the defendant, or a solicitor acting for either party. Where someone signs on behalf of a firm or company, their position or capacity should be stated alongside the signature to show they have authority to sign.
- Send the payment to the correct office. Payments into court are handled centrally rather than by the court that made the order. The money, along with the completed form and a copy of the order, should go to the Court Funds Office. Sending funds to the local court that issued the order is likely to result in the payment being refused or delayed.
- Serve copies on the other party and the court. Once the payment has been lodged, a copy of the notice should be sent to the other party in the proceedings and to the court dealing with the claim. This ensures everyone involved has a consistent record that the payment has been made and on what basis.
Common questions
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.
Common questions
Q What is the difference between Form N242 and Form N242A?
Form N242 is used when money is paid into court under a court order and the paying party is not treating the payment as satisfying the claim. Form N242A is used where a payment is made in satisfaction under Part 36, which carries specific costs and settlement consequences. Choosing the right form matters because it signals the legal effect of the money being paid in.
Q Who can sign Form N242?
The form can be signed by the claimant, the defendant, or a solicitor acting on their behalf. If a person signs for a firm, company or other organisation, they should state their position or role alongside their signature. This shows the court that the signatory has authority to act for the party making or receiving the payment.
Q Where should the payment actually be sent?
Payments into court are not sent to the court that made the order. They are sent to the Court Funds Office, which handles money held by the courts centrally. The payment should be accompanied by the completed notice and a copy of the order or judgment that required the funds to be paid in. Sending money to the wrong place usually causes delay.
Q Is a court fee payable when filing this notice?
Fees in civil proceedings change from time to time and depend on the circumstances. Rather than relying on a figure quoted anywhere, it is sensible to check the current civil court fees published on gov.uk or ask the court office directly. Your solicitor, if you have one, can also confirm whether any fee applies to the step you are taking.
Q Do I need a solicitor to complete and file Form N242?
There is no rule requiring a solicitor, and litigants in person can complete and file the notice themselves. That said, payments into court often arise in the middle of contested proceedings where the consequences of getting things wrong can be significant. Taking guidance tailored to what you describe before sending funds is a sensible precaution.
Q What happens after the payment has been made into court?
The money is held by the Court Funds Office pending a further order of the court or agreement between the parties. It is not released automatically. How and when the funds can be paid out will usually depend on the outcome of the proceedings or any further directions the court gives. The notice itself simply records that the payment has been lodged.
Q Can a payment into court be withdrawn later?
Generally, once money has been paid into court it cannot simply be taken back by the paying party. Release of the funds usually requires a court order or the agreement of the other side, depending on the circumstances. If you are considering paying money in and are worried about recoverability, it is worth thinking it through carefully before lodging the payment.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.
Sources
This guide is based on primary UK law and official guidance.
- Guidance · HMCTSCivil Procedure Rules Part 37: Miscellaneous Provisions About Payments Into Courtjustice.gov.uk
- Guidance · UK GovForm N242: Notice of payment into court (under order – Part 37)gov.uk
- Guidance · HMCTSCourt Funds Office (gov.uk)gov.uk
Legal helpline
Unsure if N242 is the right notice to file?
Payments into court can have knock-on effects on costs, settlement and the progress of your claim, so getting the notice right matters. An experienced legal adviser can talk you through your options based on what you describe and help you feel clearer before you act.
- Plain-English answers to your specific questions about payments into court
- Practical perspective on whether N242 or N242A fits your situation
- Guidance tailored to what you describe about the court order
- Clarity on your next steps before you send any money
Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.