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Money owed for work
MothballsWallet
Posts: 15,895 Forumite
Hi everyone, just wanted to ask for some advice.
Since May 2009, I've been doing some work for a business run by someone (let's call him Mr X) that a friend of mine knows. Essentially, I was running the admin side of the business for them, and Mr X and I agreed a payment of £100 per week to cover my general expenses (I did want this setting up with a more formal salary-like agreement with PAYE take care of by the company, but this wasn't set up).
I started sending invoices to Mr X approximately every 4 weeks to cover that amount of expenses, and Mr X has only paid me the sum of £600, equivalent to 6 weeks. So, before Christmas, I emailed him to explain my concerns and ask him if we could come to some sort of arrangement so that he could pay me the rest of the money owed (£2,200), as neither of us would like to be in that position.
I did ask him to contact me regarding the matter before a particular deadline, which he was unable to do, so I sent him a Letter Before Action (LBA) asking him to pay me the rest of the money by the 8th January. However, he emailed me around the end of last week offering me a goodwill gesture of £500 without prejudice.
I'm not sure whether I should accept his offer, even though the "without prejudice" part means that I could still pursue the remainder at a later date, because I don't know if he'll ever pay up the £1,700 that would still be outstanding.
My friend reckons that I should see if Mr X will go up to £750 instead, but I doubt that he would because he claims that he doesn't have any money in the company: he runs 3 companies in total, and all of them operate without the safety net of a business loan, so rely on money coming in before it can be paid out again.
I'm seriously thinking of lodging a small claims court action against him, as I stated in my LBA, but I'm concerned as to how I'd prove that I did the work, other than the computer data and email messages created during that period of time.
Should I just take the £500 and forget about the rest, or should I pursue him in the small claims court?
Thanks in advance,
MothballsWallet
Since May 2009, I've been doing some work for a business run by someone (let's call him Mr X) that a friend of mine knows. Essentially, I was running the admin side of the business for them, and Mr X and I agreed a payment of £100 per week to cover my general expenses (I did want this setting up with a more formal salary-like agreement with PAYE take care of by the company, but this wasn't set up).
I started sending invoices to Mr X approximately every 4 weeks to cover that amount of expenses, and Mr X has only paid me the sum of £600, equivalent to 6 weeks. So, before Christmas, I emailed him to explain my concerns and ask him if we could come to some sort of arrangement so that he could pay me the rest of the money owed (£2,200), as neither of us would like to be in that position.
I did ask him to contact me regarding the matter before a particular deadline, which he was unable to do, so I sent him a Letter Before Action (LBA) asking him to pay me the rest of the money by the 8th January. However, he emailed me around the end of last week offering me a goodwill gesture of £500 without prejudice.
I'm not sure whether I should accept his offer, even though the "without prejudice" part means that I could still pursue the remainder at a later date, because I don't know if he'll ever pay up the £1,700 that would still be outstanding.
My friend reckons that I should see if Mr X will go up to £750 instead, but I doubt that he would because he claims that he doesn't have any money in the company: he runs 3 companies in total, and all of them operate without the safety net of a business loan, so rely on money coming in before it can be paid out again.
I'm seriously thinking of lodging a small claims court action against him, as I stated in my LBA, but I'm concerned as to how I'd prove that I did the work, other than the computer data and email messages created during that period of time.
Should I just take the £500 and forget about the rest, or should I pursue him in the small claims court?
Thanks in advance,
MothballsWallet
0
Comments
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NO!!! The 'without prejudice' from him means that he can withdraw the offer. If you accept, then you are committed. 'Without prejudice' from you for say £1000 means that if he does not accept your offer for him to settle at £1000, then you can sue for the lot.
In your position I would be thinking I am at least 50% likely to win the lot, so an offer of under 25% just does not persuade me. But it is your judgement which matters, not mine. I think all you can hope for is how other people would look at it, not a definite answer.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Hi DVardysShadow, many thanks for straightening that out. I think I just got confused because I've seen "Without Prejudice" on some example letter before action templates and on some other formal letters.
Yeah, under 25% doesn't really make me excited either, but I'll have to see what he says when I question him about it.0 -
Without Prejudice indicates that he is not acknowledging that he owes you any money at all.0
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Yes, it's one of those things like crossing your fingers when you speak. But most people do not really know what it means, how it works or when to use it. Several times here on letters accepting good offers, people have put "without prejudice", when they should be committing both themselves and the other side to the deal and not using the phrase.MothballsWallet wrote: »I think I just got confused because I've seen "Without Prejudice" on some example letter before action templates and on some other formal letters.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Without Prejudice just mean's you cannot give that letter as evidence in a court hearing. Could you not send him a letter back sayng that you will accept the offer as part payment for the money he owes you. So that way you have £500 for yourself now. Then if he doesn't give you the remainder of the money within an agreed time limit, you can still take him to court.0
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lifesizedoll: The problem is that, if I accept the 500 quid now, he'll still owe me 1,700 quid, and I'll be in the same situation of having to set him a deadline, issue another letter before action and then take him to court if he doesn't pay up.
Most of my friends that I've spoken to have said something similar to DVardysShadow about not taking the 500 quid offered and just going to court.0 -
Mothballswallet
If I were you I would just take him to a small claims court. To me it looks as if he is taking the mickey, and hoping that you go away with far less than you are owed. Just one question, did you send Mr X any terms and conditions for the work you were doing for him? If not, and you intend to do more self employed work in the future then you should draft some t &cs to cover yourself for situations like this. Anyway take him to court, and dont forgot to add interest to the amount you are owed.0 -
Thanks for all the advice: what I'm going to do is email him back to ask him what would happen about the remaining balance if I accepted his offer of 500 quid?
Although 2,200 + 8% (I think is the current court-accepted rate) would be good, and may cover my court costs, especially if I don't get awarded them by the court.
There is the issue of proving that I did the work: the only evidence I have are the computer files and emails going back to May 2009 when the company started.0 -
I wouldn't do that.
I would acknowledge receipt of the letter dated x and state that as MBW said that you consider £500 as part payment of the amount owed to you, and if the balance isn't paid within x days you will start court action.
Then after x days log a claim online for the full amount owed. He will probably pay up when he realises you are serious about taking him to court.
Don't withdraw your claim until any money has cleared.I'm not cynical I'm realistic
(If a link I give opens pop ups I won't know I don't use windows)0 -
Do you have anything in writing about your required services to Mr X at all?
What proof do you have as to the nature of the contract between yourself and Mr X?
What were the agreed terms of the contract - was it self employed on an "as and when" basis or were you asked to do x duties every week?
How have you been accounting for your income tax and National Insurance contributions?:hello:0
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