Tale of two fees

Thoughts on how to handle one late payer and two non-responders

Didn't find your answer?

Two clients; first one for a SA return I have a standing order. Despite trying on numerous times to chase for records she has not gotten back to me and seems to have disappeared. She was previously in a bit of a mess and has only since gotten straight and given I'm taking a direct debit it seems not right to continue, but wondering how to avoid the inevitable penalties because I have no records.

Second one - guy wanted me to check his returns over for him. I did so, with no issues to advise. Sent invoice duly and seems to have gone quiet. Terms = due on receipt. He has signed engagement letters and fee schedules. How long would you wait until you go to small claims for this one? Lesson learned on taking a payment up front for this sort of work ...

Replies (12)

Please login or register to join the discussion.

avatar
By dfens
21st Jan 2019 13:14

I realise now in my tagline I referred to two late payers ... one late payer and two non-responders! :-)

Edit - found the edit button!

Thanks (0)
avatar
By bernard michael
21st Jan 2019 13:32

How much money is involved if you're thinking of going legal?

Thanks (0)
Replying to bernard michael:
avatar
By dfens
21st Jan 2019 13:43

Thanks for the response. It is only £200 + VAT, hence I was thinking of keeping it to county court and it seems their fees scale to the amount of the claim. The fees would probably take up most of the claim but it's the principle of the matter more so.

Thanks (0)
Replying to dfens:
avatar
By Accountant A
21st Jan 2019 16:17

dfens wrote:

Thanks for the response. It is only £200 + VAT, hence I was thinking of keeping it to county court and it seems their fees scale to the amount of the claim. The fees would probably take up most of the claim but it's the principle of the matter more so.

Only £25 for up to £300, apparently.

https://www.gov.uk/make-court-claim-for-money/court-fees

Don't forget to claim the statutory interest (8%).

Thanks (0)
avatar
By bernard michael
21st Jan 2019 13:59

If you win you get your court costs awarded
The good thing about issuing and winning is the effect on the late payer whose credit rating will be shot

Thanks (3)
Replying to bernard michael:
avatar
By dfens
21st Jan 2019 14:17

Thanks Bernard - I might go ahead and follow it up if I don't get progress in the next week or two...

Thanks (0)
By Moonbeam
21st Jan 2019 14:29

Send a letter before action to the last one today, giving them 7 days to pay in full, and explaining the cost to them of your going ahead with a summons. I've had people pay at that point.
For the first one, send a final letter saying not going to do anything until they get back to you and even then not going to work your socks off just because they are last minute. Tell her it's her responsibility not yours. And hold the money until you hear from them.

Thanks (2)
avatar
By bernard michael
21st Jan 2019 14:35

If you do have to issue court proceedings and not done it before you'll find Money Claim on line is efficient and easy.

https://www.moneyclaim.gov.uk/web/mcol/welcome

Thanks (2)
avatar
By zebaa
21st Jan 2019 14:53

But if you do win - and there will be lots of mud slung your way - then you have to collect. More time, more effort. Depends on how busy you are, but for £200 it may be marginal.

Thanks (1)
avatar
By dfens
22nd Jan 2019 08:24

Thank you all for the suggestions ... going to be writing my letter to the first one and will give the second one more week before I look at a summons...

Thanks (0)
avatar
By pauljohnston
29th Jan 2019 09:59

We use thomas higgins to send the letter I think they charge £3 plus Vat. A solicitors letter is often enough

https://www.thomashiggins.com/

Thanks (1)
Replying to pauljohnston:
Red Leader
By Red Leader
29th Jan 2019 10:10

Agreed, they are good. The OP should use them, the solicitor's letter before action has much more effect than one coming from the claimant. You are not committed to using Higgins follow on services if you don't want to.

Thanks (1)