OP I think we can all agree that there's nothing to be scared of in going to the small claims court. You probably won't even get a summons.
If you do, just because they say you owe them money, doesn't mean you do. Even if the court does find against you, you don't have much to lose so don't worry about it.
Collaborate can we PLEASE, PLEASE, PLEASE agree that we're all trying to help here rather than score points?
I was awarded costs of about £200 at a case management conference for something that started life in the small claims court and should have stayed there. Not legal fees, but other costs to do with the claimant's timewasting through breach of a procedural rule.
The judge also invited both sides to submit legal costs. They were both rejected.
Maybe he did that was because it was a CMC to decide on the track. Maybe it was because the claimant made costs an issue by requesting it be moved to a track where costs would definitely have been live.
Or maybe he wanted to make a point about unreasonable litigants wasting time and money - the court's I mean - not the hapless defendant because the £200 did not cover my costs or anxiety. I don't know. But it does happen and I know that because it happened to me.
She dropped it soon after so that was that. Because the small claims court is so cheap for litigants and costs are awarded in exceptional circumstances only, and then not in punishing amounts, it is quite a good way for people who want to harass you to be able make your life hell. IME, of course. I had three failed summonses from this person. Can't see a way round it though.