Late payment of invoices

[Shotto]

I am currently contracting at a household name IT company.... They are now 3 weeks late paying my first invoice. For the past 3 weeks I have been jerked around by their accounts payable dept with changes to the info in the invoice...although everything on there originally was as per contract.

I have spent much of the last 3 weeks trying to sort this out, and it appears that several other contractors are in the same boat. It looks like "crap admin" to me rather than anything iffy, but it's really winding me up.

Has anyone else been in the same situation....how did you handle it? I have been contracting for 4 years and have never been paid late like this.... I still can't get confirmation that the admin is fixed and wwhen I'm getting paid

[mudskipper]

Are you direct or through an agency?

I work direct, and ClientCo's accounts do seem very inefficient. After several late invoices I found the following was quite effective

"Dear [client]

Unfortunately Invoice [n] has still not been paid, and I have received no communication following my last email. The payment terms were agreed at 14 days, so this became overdue on [date]. I’m sure you’re aware that, under the ‘late payment legislation’, MyCo can charge interest on the overdue invoice, as well as a recovery fee. I’m keen to resolve this without going down that route, so please can you contact me to assure me that payment will be made immediately? "


The money was in my account two days later.

[krytonsheep]

It's worth having a look here Late payment. How to manage debts. :: Contractor UK

They are now 3 weeks late paying my first invoice. For the past 3 weeks I have been jerked around by their accounts payable dept with changes to the info in the invoice

If the invoice keeps getting changed, then its date of submission in to the accounts system will be when it was finally accepted (in your case it sounds like a few days ago). From that point they'll have however many days laid out in the payment conditions to pay it (e.g. they may not have to pay it for 28 days from now).

[SueEllen]

Has anyone else been in the same situation....how did you handle it? I have been contracting for 4 years and have never been paid late like this.... I still can't get confirmation that the admin is fixed and wwhen I'm getting paid.

Start of with what k2p2 has suggested mentioning The late payment of commercial debts (interest) Act (as amended)

. For the past 3 weeks I have been jerked around by their accounts payable dept with changes to the info in the invoice...although everything on there originally was as per contract.

That's a well-known common trick mainly used by small companies not to pay their suppliers but if it's not in the contract that your invoice should have random bits of information then can't be enforced.

In my case I had a large well-known client like that.

First I asked why they were paying late. The accounts department stated they needed another reference number on the invoices and that they needed 30 days instead of 21. (They were trying to get away with paying 35+ days later.)

When my company had taken on the contract I had asked via email if there were any other particular reference numbers apart from the one I had that I needed to add to my invoices. I was told "No" via email.

I did however agree with the client contact to extend the credit terms by 7 days so the accounts department had no excuse not to pay on time.

So now my invoices had the two references numbers they needed, my reference number, the submitted date and payment due date plus other standard information. In addition at the end under the account details I added a paragraph that stated due to previous late payment of invoices I had the right to charge them late payment fees and interest.

The accounts department still refused to pay invoices on time.

So I refused to do any work for them for a few days until the current overdue invoice was paid. This caused the issue to be flagged up with one of the directors, someone being told off and a late payment payment.

Oddly enough the accounts department still tried to **** me around once more afterwards. As I now had the contact details of people higher up when the accounts department refused to act on my email, a quick email to one of them got my invoice paid asap.

Even if your invoice has the incorrect amount they is case law of Ruttle Plant Hire Limited v Secretary of State that makes it clear the client has to pay you what they think is owed on time and get you to re-submit your invoice with the right details.

[sim418]

I am also having issues with late payment of invoice from a previous client, the payment is now 6 weeks late. I have now issued a letter to the accounts department requesting immediate payment, phone calls have been made, emails have been sent to the managing director and general manager who used to look after payments.

Had an email today saying that, "should be able to get back to you next week with a payment date", emailed them back saying that payment is 6 weeks overdue and want nothing less than immediate payment.

Action now is, if no payment is received within 1 week, a final letter with be sent indicating that if no payment is received within 7 days, legal action will be taken to recover the debt.

I believe you really have to stick to your guns on payment issues and not get fobbed off with excuses etc.

What would happen if you were late paying your credit card by 6 weeks and then turned around to them and said that you would try and get back to them next week to let them know when you would pay?

I am also now charging interest on the debt along with late payment compensation.

[Wanderer]

Action now is, if no payment is received within 1 week, a final letter with be sent indicating that if no payment is received within 7 days, legal action will be taken to recover the debt.

Send it "Signed for" to the director of the company too otherwise it just gets read by some numpty who doesn't give a tulip.

Good luck!

[sim418]

Payment from my old client is now over 2 months late, absolutely no sign of them paying and no reply to my last email and letter stating that 'if no payment is received within 7 days, legal action will be taken to recover the debt'. I will now start court proceeding on Wednesday. Enough if enough.

[Tanya@SC Lee Accountant Ltd]

There are so many better quality providers you may find another one.
You may take legal action if they do not pay you
Thanks
Harry Lee

I am currently contracting at a household name IT company.... They are now 3 weeks late paying my first invoice. For the past 3 weeks I have been jerked around by their accounts payable dept with changes to the info in the invoice...although everything on there originally was as per contract.

I have spent much of the last 3 weeks trying to sort this out, and it appears that several other contractors are in the same boat. It looks like "crap admin" to me rather than anything iffy, but it's really winding me up.

Has anyone else been in the same situation....how did you handle it? I have been contracting for 4 years and have never been paid late like this.... I still can't get confirmation that the admin is fixed and wwhen I'm getting paid

[northernladuk]

There are so many better quality providers you may find another one.
You may take legal action if they do not pay you
Thanks
Harry Lee

Harry, your posts don't make any sense. What has a different provider have to do with the OP's situation. If you mean providers of accountantancy services you might want to read the T&C's about advertising on here.

If you were advertising I would say you need to word it a little better so it makes sense else people won't be remotely interested.

[Tanya@SC Lee Accountant Ltd]

Provider I am talking about obviously the agent. Someone late payment could be from the agent not from the company he is working with. He does not say clearly where is the problem actually from.

Harry, your posts don't make any sense. What has a different provider have to do with the OP's situation. If you mean providers of accountantancy services you might want to read the T&C's about advertising on here.

If you were advertising I would say you need to word it a little better so it makes sense else people won't be remotely interested.