Small Claims for unpaid invoices - opinions needed

polymorphe

I hope this is the right forum to ask this question! I've run a small business since 2004. I've never made a lot of money, but I've changed the way I run my business in the last 18 months and I'm better off than I was a year or so ago. I've come to realise that a number of people owe me money and I'm considering taking them to small claims court for unreceived payment. I've described a couple of examples here and want to know if you think it's worth pursuing?

1. In October 2007, I signed a contract to work for a company in a technical IT position. I took this work on to support the tiny profits I was making from my business at the time. The terms were for 3 months and to give a days notice if I wanted to leave. I left shortly after as I had to suddenly move to Suffolk. I gave 24 hours notice and left. I was then sent an email telling me I should've explained my situation a bit better and if I wanted to claim due payment I should invoice them on the grounds that it would be easier for them to treat me as an external subcontractor. I agreed and invoiced them in January, the invoice was sent by recorded post and was received by them. I never received payment.

I've left it all of this time because I felt guilty for leaving the business at such short notice even though I was within the terms of the signed contract. However, I now understand I am entitled to receive payment for work completed at their premises regardless of when and how I left. Also, it cost me a fortune to travel there every day. 1 hour by train there and back. I couldn't really afford the travel costs. I'm just wondering if I'm correct in assuming this company is still liable to pay me and if it's worth taking them to small claims? Will this case still be accepted even though it happened in 07/08? The amount owed is around £400.

2. Recently, I have a client who hasn't paid for work completed in October. She was invoiced in December and I've sent repeated reminders. For every reminder I've sent, I recieve a text the next day saying the money will be in tomorrow or to text my bank details and excuses about the server/email being down etc etc. As far as I can tell, my business email account has been blocked by her system in the last week as mails bounce when I send emails to her from it. I've been emailing her from my personal email instead and it goes through without a hitch. I have a feeling she isn't going to pay me anytime soon. The sum in question is small. About £50. But I'm considering making a claim using money claim online as a matter of principle. Is it worthwhile?

I'd appreciate your opinions and advice.

LadyMissA

polymorphe wrote: »

I hope this is the right forum to ask this question! I've run a small business since 2004. I've never made a lot of money, but I've changed the way I run my business in the last 18 months and I'm better off than I was a year or so ago. I've come to realise that a number of people owe me money and I'm considering taking them to small claims court for unreceived payment. I've described a couple of examples here and want to know if you think it's worth pursuing?

1. In October 2007, I signed a contract to work for a company in a technical IT position. I took this work on to support the tiny profits I was making from my business at the time. The terms were for 3 months and to give a days notice if I wanted to leave. I left shortly after as I had to suddenly move to Suffolk. I gave 24 hours notice and left. I was then sent an email telling me I should've explained my situation a bit better and if I wanted to claim due payment I should invoice them on the grounds that it would be easier for them to treat me as an external subcontractor. I agreed and invoiced them in January, the invoice was sent by recorded post and was received by them. I never received payment.

I've left it all of this time because I felt guilty for leaving the business at such short notice even though I was within the terms of the signed contract. However, I now understand I am entitled to receive payment for work completed at their premises regardless of when and how I left. Also, it cost me a fortune to travel there every day. 1 hour by train there and back. I couldn't really afford the travel costs. I'm just wondering if I'm correct in assuming this company is still liable to pay me and if it's worth taking them to small claims? Will this case still be accepted even though it happened in 07/08? The amount owed is around £400.

2. Recently, I have a client who hasn't paid for work completed in October. She was invoiced in December and I've sent repeated reminders. For every reminder I've sent, I recieve a text the next day saying the money will be in tomorrow or to text my bank details and excuses about the server/email being down etc etc. As far as I can tell, my business email account has been blocked by her system in the last week as mails bounce when I send emails to her from it. I've been emailing her from my personal email instead and it goes through without a hitch. I have a feeling she isn't going to pay me anytime soon. The sum in question is small. About £50. But I'm considering making a claim using money claim online as a matter of principle. Is it worthwhile?

I'd appreciate your opinions and advice.

Get someone else to call saying they are chasing the debt on your behalf.

Notmyrealname

You need to send them a "Letter before action" by Special Delivery. It needs to be along the lines of:

"Dear XXX,

FINAL DEMAND: LETTER BEFORE ACTION.

Despite numerous reminders, the following invoices (see attached copies) are overdue:

<details of invoice>

If CLEARED payment is not received by <7 days from date of letter>, I will commence proceedings in county court to recover the money. This may have an effect on your credit rating and ability to get credit in the future.

Payment may be made in person with cash or by bank transfer to <account number - sort code>. Cheques will not be accepted as a method of payment.

Yours <insert name>

Evilm

1 - The limitation is 6 years of no contact regarding the matter, so yes. However it doesn't seem you have chased this at all since sending in the invoice so send a copy asking for payment and go through a proper chasing process. Do a letter before action if that doesn't work and then do a Money Claim.

2 -Up to you. But do a letter before action and send it to the company by Special Delivery (gets a signature and proof of delivery and doesn't go missing/not signed for as often as recorded).

Savvy_Sue

WRT the 1st example, do check that the company are still trading before you do anything. If they're not, you won't be paid any time soon, whatever action you take.