Money owed for work

MothballsWallet

Thanks olly300, although from reading the Money Claim Online site, it does suggest trying every other option (including mediation) before going to court, but do you really have to try mediation before going to small claims court?

MothballsWallet

My answers in red.

Tiddlywinks wrote: »

Do you have anything in writing about your required services to Mr X at all?
Yes, I have the emails where we agreed what he would pay me and what I would be doing for the company.

What proof do you have as to the nature of the contract between yourself and Mr X?
It's in emails, and more of an informal agreement - no formal contract was signed, I sent in my invoices to him every 4 weeks.

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?
Technically, it was supposed to be self-employed to begin with, performing the agreed duties every week, and the company was supposed to go onto PAYE later on.

How have you been accounting for your income tax and National Insurance contributions?
Well, on the very first invoice I sent him, I included fields for the tax and NI contributions: he replied with a modified invoice template that didn't have the tax and NI boxes and told me to use that format instead.

Now I find out that, if I do take him to court, it'll be better if I use my local County Court's mediation service and have that fail to reach an agreement before I can go to the Small Claims Court (at least that's what the Money Claim Online website suggests).

I've sent off an email worded in the way that olly300 suggested, so I'll have to wait and see what happens next to decide my next move.

unemployedJCP

I would suggest using the Small Claims Court. Both parties are expected during the process before it goes to court to use mediation. Doing it this way gets the ball rolling and he is more likely to pay up.

ceridwen

COURT definitely - the cheeky wotname. He is trying it on and hoping you won't.

Get on with that Small Claims Court claim right now...

MothballsWallet

Well, I emailed him to say that I would accept the 500 quid as a part payment, but I've heard nothing back from him. I wonder if it was because I did ask him about what would happen with the remaining 1,700 quid?

I think I'll email him again before I go to bed and say that if he doesn't reply to my email from Wednesday evening by a set time, I'll start court proceedings.

DVardysShadow

MothballsWallet wrote: »

Well, I emailed him to say that I would accept the 500 quid as a part payment, but I've heard nothing back from him. I wonder if it was because I did ask him about what would happen with the remaining 1,700 quid?

I think I'll email him again before I go to bed and say that if he doesn't reply to my email from Wednesday evening by a set time, I'll start court proceedings.

You must now start writing proper letters, including 'letter before action'. Keep copies etc.

MothballsWallet

DVardysShadow - so, do I have to write another LBA to him?

With regards to the emails I've sent to him over the last few days that (so far) he has not responded to, would that be considered as a form of mediation at the small claims?

rupee99

You are not obliged to write another letter before action, in fact to do so may indicate prevarication on your part.

You should send another e-mail, something along these lines.

Dear Mr X

I sent a letter before action on xx January 2010 in respect of your debt to me for services rendered. In the intervening period you have engaged in delaying tactics and have made no serious attempt to settle the debt or come to a suitable arrangement.

I write to inform you that on Monday 25 January I shall be issuing proceedings in the appropriate County Court for the recovery of £2,200 plus costs and interest.

Yours sincerely

MothballsWallet.

On Monday issue the proceedings (on line if you are unable to get to the Court) as not to do so would indicate to Mr X that you are not serious.


Unless of course he pays you in the meantime.

DVardysShadow

MothballsWallet wrote: »

DVardysShadow - so, do I have to write another LBA to him?

With regards to the emails I've sent to him over the last few days that (so far) he has not responded to, would that be considered as a form of mediation at the small claims?

You don't have to. But there is at least some debate over how much emails count for. Which is why I suggested a proper letter. The change of medium can also convey an intent on your part.

edit: Sorry, missed it. You have already done LBA. Well, now you must sue or forget it. As rupee indicates, too much correspondence after LBA indicates you are prevaricating.

MothballsWallet

Here's an excerpt from the email he sent me on Thursday night:

If you go to court I will defend it as a non debt - you do not have a contract and you cannot supply proof of expenditure to justify the expenses - only {my friend} has the funds from the trading that {the company} did and he has promised to put more business through {the company} so that you can be paid over a period of time.

You have not answered my questions regarding receipts to cover expenses paid to date.

My friend has told me that he does not have the funds from the company's trading as Mr X suggests. Mr X also mentions that a court order to pay the 2,200 he owes me would cause the company to go into liquidation.

I'm not sure how he can ask me for receipts now when he never did before, but there you go.

Anyway, I have followed the advice from rupee99 and DVardysShadow, so hopefully that will scare him further, but I'm concerned that he'll just keep asking questions about the receipts, which I don't know if I can answer.