We were approached by a Ltd company contractor in relation to becoming his accountants. He had been trading for 18 months or so but didnt have an accountant in place.
We agreed the fees by telephone and also via emails. I sent him our terms and asked for his identification docs to which he sent back his id but not the Letter of Engagement.
He then replied to my email with the fees stated on it by sending all of his HMRC company logins, company bank statements, invoices etc. At that point we made a start on the company accounts and got everything finalised apart from a few queries that we then sent to him. He also wanted to change his company VAT scheme from the flat rate scheme to the standard method of accounting for VAT to which we drafted and sent him by email the necessary letter.
A few days later he emailed to say that he had changed his mind and that he didnt want us to proceed. He didnt really give a reason why. I informed him that thats absolutely fine but we would have to charge for our time and as such I sent him an invoice.
He now refuses to pay and informs me that as he didnt sign the Letter of Engagement that no contract was in place. He also states that our fees were not clearly stated but the email he replied to with his bank statements / logins etc, clearly states what the fees are.
So he is refusing to pay (for the above reasons) but to my mind, his intention when he sent us his documents was pretty clear that he wanted us to go ahead. I am not desperate for the fees, but to my mind there is a principle here and so I feel like pushing it to the small claims court if necessary.
Just wondeirng what people think - should I just let it go and move on or stick to my guns?