Understanding the six-year rule under the Limitation Act 1980
The Limitation Act 1980 sets out strict time limits—known as limitation periods—within which legal claims must be brought. For most contractual and debt-related matters, the key period is six years from the date the cause of action accrued.
Once this period has passed, the claim may be statute-barred—meaning the defendant can raise the limitation period as a defence, rendering the claim unenforceable in court.
This is highly relevant for GP practices, particularly when dealing with disputes over unpaid invoices, historic service charges, or contractual disagreements.
The Legal Principle
Under section 5 of the Limitation Act 1980:
“An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.”
For practices, a simple contract could mean:
A written or verbal agreement with a supplier
A patient or third-party service agreement
A private medical report or occupational health service arrangement
Once the six years have passed from when the breach or non-payment occurred, the claim is generally time-barred.
Historic Debts May Be Irrecoverable
If a private patient or an organisation hasn’t paid for a service provided more than six years ago, you may no longer have a legal route to recover the money.
Avoiding Wasted Legal Costs
Attempting to sue for an old debt outside the limitation period could result in wasted court fees and legal costs, with little chance of success.
Accurate Record-Keeping is Essential
Without clear records showing when a debt or breach occurred, you may be unable to prove that you are within the limitation period.
In 2016, a GP practice completed a private medical report for a solicitor acting for a patient. The solicitor never paid the £120 invoice. In 2025, the practice decides to pursue the debt.
Outcome: The claim would be statute-barred—more than six years have passed since the invoice became due. The solicitor could successfully defend the case on limitation grounds.
In 2018, a locum GP was booked for several sessions but failed to attend, breaching the agreement. The practice took no action at the time. In 2025, they try to recover lost income.
Outcome: The limitation period started from the date the breach occurred in 2018. By 2025, the claim is likely to be statute-barred.
A landlord invoices a practice in 2014 for backdated service charges but only starts chasing in 2023.
Outcome: The landlord may be out of time to enforce the charges if more than six years have elapsed from when the charges were due.
Acknowledgement or Part Payment
If the debtor acknowledges the debt in writing or makes part payment within the six-year period, the clock resets.
Example: A debtor sends £50 towards a £500 debt in year 5—the limitation period restarts from the date of payment.
Latent Damage & Personal Injury
Different time limits apply for personal injury (usually 3 years) or latent damage cases. These are less common in routine GP practice management but important in clinical negligence contexts.
Act Promptly on Debts – Chase unpaid invoices regularly; don’t allow them to drift for years.
Keep Clear Records – Record the date invoices are issued, due, and when services were provided.
Review Outstanding Balances Annually – Write off irrecoverable debts after the limitation period to keep accounts clean.
Train Administrative Staff – Ensure they understand the importance of time limits when chasing payments.
Seek Legal Advice Early – If a dispute is nearing the limitation deadline, act quickly.
Summary
The six-year limitation period can prevent practices from recovering debts or enforcing contractual rights if too much time passes. By acting promptly, keeping good records, and understanding the limitation rules, GP practices can protect themselves from financial loss and unnecessary legal costs.