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Slow Payment of Invoices by the Legal Profession

My brother is a consultant cardiologist who occasionally does expert witness work for legal cases. It regularly takes over a year before he receives payment for his invoices. He is annoyed that he often has to pay tax before he has received payment from his client.

What are his options?
Gavin Scott

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By admin
20th Apr 2002 19:23

The Dr. needs a good PA
The doctor needs to get his finances in control, by either employing someone to do these things on his behalf, or by contacting a credit collection agency.

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10th Apr 2002 11:24

Commercial Debts and interest
The Late Payment of Commercial Debts (Interest) Act 1988 gives you the right to add interest to debts not setttled by the due date (30 days from Invoice date unless otherwise specified.) Your brother should send regular supplementary invoices for the accruing interest (8% above base, I think) and sharpen the solicitors' minds about their costs.

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10th Apr 2002 11:51

Outsource your Credit Control to avoid cash flow poblems
Outsourcing your Credit Control or part of it may help you. If you have specific problems with certain debtors refer them to an outside agency on a "no collection, no fee" basis.

Visit www.ccssolutions.co.uk for further info. Charges start from as little as 2% no Collection, no fee.

The legal profession on the whole are known to be slow payers, but, witholding payment for a year is outrageous. Were you persistenelt chasing them during this time? if so, any profit that you made has effectively been written off.

Rgds,

Jamie O'Connell

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By Abacjm
09th Apr 2002 16:38

Take the Lawyers' Pulse
Waiting for a year before receiving payment?That would give anyone a heart attack! Either advise him to go on a receipts basis of accounting (may just get away with it) or insist on pre-payment of at least 80% if not all. Is he VAT registered? Cash Accounting here may help as well

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