I have had this particularly client for five years - Sole Director of Limited Company. Really good relationship - no issues. I knew him quite well since we have mutual friends. I actually wasn't charging him much and not put the price up for five years
When the Pandemic hit - he lost his only contract. Immediately I said to him he can delay payment if that helps. In the meantime I had been submitting his monthly Furlough Claim which I did not charge for.
Back in November I inquired when I shall be expected to receive payment. I thought he could pay from his Furlough money - at least pay something. Unfortunately, he ignore my emails. Beginning in December I sent a slightly stronger email refusing to carry out any further work including submitting the company accounts which was due shortly
Out of the blue, I received a professional clearance letter from his new accountants. I was gobsmacked as I thought at least have the courtesy to inform me before moving. I am not sure how he will be able to afford these accountants as they are not small.
I have a very old engagement letter which I did update a few years ago but this client has the old engagement letter which doesn't allow me to charge on a per hour basis. Only mentions monthly basis which covers the company accounts etc so not sure if I can still charge for the Furlough work ? The work I have carried out since March has only been payroll and Furlough submissions. The old Engagement letter does say that the director will be personally liable for outstanding accountancy fees.
I would have to adjust the outstanding amounts payable as his new accountant will file the company accounts etc but want to charge him for payroll and Furlough submissions.
The director is planning to close his company and relocate overseas. Looks like my chances to get any of the money due looks remote unless making the director personally liable for the debts clause holds ?