Contract Ended - Unpaid Invoices

[schindler]

I have finished this gig through one of the Big agency dealing with Public sector contracts.They have paid all of my invoices, except the VAT elements for the first 5 invoices.I had already sent the VAT related docs to them before the start of the gig,but neither the agent nor the agency's payroll dept could be bothered to respond to my several emails/phone calls to sort this out.


Now that I have finished this gig what do i do?. The agency owes me 2k in unpaid VAT element.

[pmeswani]

I have finished this gig through one of the Big agency dealing with Public sector contracts.They have paid all of my invoices, except the VAT elements for the first 5 invoices.I had already sent the VAT related docs to them before the start of the gig,but neither the agent nor the agency's payroll dept could be bothered to respond to my several emails/phone calls to sort this out.


Now that I have finished this gig what do i do?. The agency owes me 2k in unpaid VAT element.

Send them a reminder letter, by post, via Registered / recorded delivery, advising them that they 14 days to pay the VAT amount on the invoices for the amount you mentioned. If they fail to pay, you will take them to a small claims court to recover the said amount.

Or look at www.payontime.co.uk on how to best proceed. I'm sure there are reputable debt collecting agencies that may be able to assist. Search this forum for names of companies that have been suggested.

[expat]

Send them a reminder letter, by post, via Registered / recorded delivery, advising them that they 14 days to pay the VAT amount on the invoices for the amount you mentioned. If they fail to pay, you will take them to a small claims court to recover the said amount.

Or look at www.payontime.co.uk on how to best proceed. I'm sure there are reputable debt collecting agencies that may be able to assist. Search this forum for names of companies that have been suggested.

Just a question: if they don't pay VAT, is that something that HMRC would take an interest it?

[pmeswani]

Just a question: if they don't pay VAT, is that something that HMRC would take an interest it?

Good point. Didn't think of that at the time of my original post.

[schindler]

Just a question: if they don't pay VAT, is that something that HMRC would take an interest it?

So what do u suggest? leave it like that and let HMRC handle it? In any case there is the flate rate VAT savings that I will lose(although it is not much!)

[Beefy198]

I think the HMRC would be VERY interested.

I would make one more phonecall (warning them) then get the HMRC involved. I can't see why you should put it in writing as it's not 'your' debt, it's money that you will be passing onto the government (if you see what I mean). But others might disagree.

[Ardesco]

I would suggest calling the VAT helpline and telling them that one of your clients is refusing to pay you VAT and ask them what the next steps are. I'm sure they will be very interested

[BlasterBates]

err but does HMRC care....because it is your responsibility. HMRC would argue that they paid the VAT but not all of your bill. Won't they expect you to pay the VAT anyway.

[expat]

err but does HMRC care....because it is your responsibility. HMRC would argue that they paid the VAT but not all of your bill. Won't they expect you to pay the VAT anyway.

I believe they will insist on that, and I don't expect HMRC to say to you "just leave it to us, we'll sort it".

OTOH HMRC might separately want to take a look at the agency, and from the agency's point of view, they might prefer that not to happen; so the threat might work.


Otherwise, if you get HMRC to say that they paid a lower amount (plus VAT) then you at least have evidence that they underpaid you. They can't just sit back and say "we paid already".

[Beefy198]

err but does HMRC care....because it is your responsibility. HMRC would argue that they paid the VAT but not all of your bill. Won't they expect you to pay the VAT anyway.

From your paper trail you can easily show they didn't pay the VAT.

Contract at x rate, signed timesheet showing y days worked, invoice for x multiplied by y plus VAT.

Then just show that they have then paid without the VAT. Following your viewpoint almost anyone could just not pay the VAT and the HMRC would say "they just haven't paid all the bill, it's up to you to sort out"