Reasons for non payment.

[aspenarb]

Interesting, I wasn't aware that has applied to all businesses since 2002, in the past it was only large firms. Also the revision is since September 2013 and is for 30 or 60 days after the invoice is submitted, but longer terms can be written into the contract if it is reasonable to both parties.

 

In practice large firms do not accept an invoice until they have signed off the work so they still pay on 90 days.

 

More to the point has anyone succeeded in getting paid interest using this legislation?

 

Not a chance with the big boys, their legal teams would eat you alive even if you did managed to get one of their off shore SPV`s into a court room. You may scare Mrs Miggins with this crap but no chance with bigger outfits.

 

Bob

[felixthelogchopper]

Rookie mistake.

 

 

If you have no payment terms that say when the payment is due then it can never be over due.

 

I am sure that there was big case where this happened.

 

If it went to court and no payment term was specified in the contract then the court would imply a term which would be an industry average eg 90 days after completion. It could all be avoided by better drafting of contract T & Cs in the first place.

[richy_B]

My experience with small claims etc is a legal professional will look at what is 'reasonable'. So as mentioned if it's a commercial transaction then 30-90 days would be considered reasonable. In a domestic setting it could be considered reasonable to ask for payment on completion. If you have a administrative cost of £25/1 hours works then you can pass that on as it's a reasonable expense.

 

If you include items like 10% interest per day/week it would not be enforceable despite, signatures etc. The only way of doing this would be creating a credit account for a customer and billing services to that. Obviously very complicated for smaller companies.

Edited December 6, 2015 by richy_B

[wicklamulla]

I knocked over a fair size oak on friday morning, it hit the deck at 10.20am. The customer BACS'd the money to my account about 11.30 am ! We were on site till after 5pm but he was still happy to pay up despite the job not being finished. Wish they were all like that.

[Starscream]

Rookie mistake.

 

 

If you have no payment terms that say when the payment is due then it can never be over due.

 

I am sure that there was big case where this happened.

 

I'm employed and just do bits on the side. Don't call me a rookie you muggy spunk guzzler

[Hodge]

I'm employed and just do bits on the side. Don't call me a rookie you muggy spunk guzzler

 

 

That's a bit harsh, chill out.

[Starscream]

That's a bit harsh, chill out.

 

Yeah fair one.. Ive had a few drinks just the now. Sorry Justme. I may have made a mistake on my invoicing, but how was I supposed to know? I'm not fully in business and this is how I learn, from my mistakes. The word rookie is something I'd use for a brash monkey on his first week. Not something I see myself. Anyway, sorry again.

[Joe Newton]

Yeah fair one.. Ive had a few drinks just the now. Sorry Justme. I may have made a mistake on my invoicing, but how was I supposed to know? I'm not fully in business and this is how I learn, from my mistakes. The word rookie is something I'd use for a brash monkey on his first week. Not something I see myself. Anyway, sorry again.

 

 

Careful, someone will throw a brick through your chipper...

 

I found it hilarious by the way. Then again I thought you were joking.

[felixthelogchopper]

Careful, someone will throw a brick through your chipper...

 

I found it hilarious by the way. Then again I thought you were joking.

 

[Starscream]

Careful, someone will throw a brick through your chipper...

 

I found it hilarious by the way. Then again I thought you were joking.

 

That's ok, I don't own a chipper!! They could aim it at my head though, think I'm going through a bit of a phase at the moment, been rather ratty recently. Boiler broke, that's £2000 down the tubes and I've quit smoking!! Boy is the smoking bit hard though!