Consulting firm refusing to pay invoice

[kempc23]

Chase them for late payment, but yes, if they disagree.

Why are you invoicing expenses with time? I keep mine separate for this exact reason.

I thought it was standard practice to issue an invoice with time and expenses on it, as separate lines. Do you issue two separate invoices then?

Well the £10k invoice only has about £10 of VATable expenses, can I cancel and reissue two separate invoices?

If I didn't have this invoice outstanding I would absolutely pursue the expenses via legal means, if necessary. But I don't want that to mean I have to wait 6 months (or whatever) to get the £10k.

It has left a really bitter taste, especially as I got two other people onto the project for them free of charge, saving them tens of thousands in agency fees.

[cojak]

Yes, most do send 2 separate invoices. I do.

[scooby]

I thought it was standard practice to issue an invoice with time and expenses on it, as separate lines. Do you issue two separate invoices then?

Well the £10k invoice only has about £10 of VATable expenses, can I cancel and reissue two separate invoices?

If I didn't have this invoice outstanding I would absolutely pursue the expenses via legal means, if necessary. But I don't want that to mean I have to wait 6 months (or whatever) to get the £10k.

It has left a really bitter taste, especially as I got two other people onto the project for them free of charge, saving them tens of thousands in agency fees.

And this is why they are withholding. The pressure is on you to fight the the whole amount for £20. If you had separate invoices only the £100 would be outstanding. I dont know if you can cancel the invoice, and separate them. Talk to the client, I'm sure you can do this.

But again, for £20, is it worth potentially harming a relationship?

[kempc23]

The relationship is way beyond salvaging!

I have spent the last few days really stressing myself out about this. I feel so strongly about this that I want to fight this as a matter of principle. I have shown evidence from an accountant that I am correct, but the other party just ignores it.

However on the other hand, I could be risking £10k here, they could go bust before they pay, or anything could happen really. And its also not worth the hassle. I just don't want to go back to this arrogant director, cap in hand, and say "OK, you win".

A couple of important lessons have been learned though, firstly I will be invoicing time and expenses separately in future. Secondly, I will clarify upfront whether net expenses or gross expenses are payable. My accountants (in touch) have been great throughout this, extremely supportive, and writing very comprehensive emails. Its just a shame they have been completely ignored!

[Sockpuppet]

The relationship is way beyond salvaging!

I have spent the last few days really stressing myself out about this. I feel so strongly about this that I want to fight this as a matter of principle. I have shown evidence from an accountant that I am correct, but the other party just ignores it.

However on the other hand, I could be risking £10k here, they could go bust before they pay, or anything could happen really. And its also not worth the hassle. I just don't want to go back to this arrogant director, cap in hand, and say "OK, you win".

A couple of important lessons have been learned though, firstly I will be invoicing time and expenses separately in future. Secondly, I will clarify upfront whether net expenses or gross expenses are payable. My accountants (in touch) have been great throughout this, extremely supportive, and writing very comprehensive emails. Its just a shame they have been completely ignored!

Just let it go, seriously.


I invoice all in one. I don't separate out the item lines and I don't provide clients with a copy of the expense. They just get a bill of one line with VAT added on top.

[kempc23]

Yes you are right.

It really isn't the money, its just the fact that I have sent several emails from my accountant to this person that flat out tells her she is wrong, but she arrogantly prefers to trust her own limited accounting knowledge over that.

I have sent them revised invoices, and told them I don't want anything to do with them in the future. It is a real shame, as the other two directors are really good, and I had a good relationship with them.

Chalk this one up to experience I think

[SueEllen]

Yes you are right.

It really isn't the money, its just the fact that I have sent several emails from my accountant to this person that flat out tells her she is wrong, but she arrogantly prefers to trust her own limited accounting knowledge over that.

How do you know she hasn't consulted another accountant? Or has any accountancy qualifications herself?

Remember your accountant works for you so is going to defend your position.

It's actually better when dealing with people like that you get the two parties to talk to each other rather than sending emails.

I have sent them revised invoices, and told them I don't want anything to do with them in the future. It is a real shame, as the other two directors are really good, and I had a good relationship with them.

That's a bit stupid as now you have strategies to deal with someone like that.

[kempc23]

I know she isn't an accountant by the things she has said, misunderstanding even simple things.

She says she has consulted her accountant who agrees with her. She initially refused to provide any evidence of this. She then sent me an email from about a year ago that was discussing a different issue (which she again found difficulty in grasping). She said she spoke with him at length so I asked her to send me something from him that specifically referred to this situation, she again refused.

I think that is doing my accountant a disservice to say they are just fighting my corner. They have told me the correct way to invoice. There are posts from other contractor accountants on here saying the same thing and the posts on HMRC agree with what he is saying.

[kempc23]

How do you know she hasn't consulted another accountant? Or has any accountancy qualifications herself?

Remember your accountant works for you so is going to defend your position.

It's actually better when dealing with people like that you get the two parties to talk to each other rather than sending emails.


That's a bit stupid as now you have strategies to deal with someone like that.

I don't think my accountant would talk to their accountant, surely that isn't part of the service? And which part are you saying is stupid? Sending them revised invoices or telling them I don't want to work with them again?

[SueEllen]

Thing is she has odd versions of the truth in this and probably other things.

You now have strategies to deal with her with this and probably have strategies to deal with her in other things, so you sound like you are cutting of your nose to spite your face.

She won't be the only difficult person you are ever going to have to deal with and if you get this stressed by £20 I wonder how you are going to cope with larger things.