Non-payment help needed

ILW

If she agreed a price and you delivered as promised, what your costs were is nothing to do with her. Whether it is worth the time chasing for £190 is a judgement you need to make.

visidigi

dp313 wrote: »

The problems I can see, as suggested earlier are that it may be perceived as a kind of gentlemans agreement because it was a friendly email negotiation rather than a written contract.

I wouldn't chase £540 as she just owes £190 but my concern is its all unofficial cash in hand, I am not registered as self employed and nothing is declared, will this count against me?

The point is she DOES owe you £540, if you were to claim you would claim for £540 as she has no contract with the designer and the designer is your contractor not hers.

If you are not registered/declared then you have no chance. I used to do graphic design in my spare time and even I self assessed - inc. National Insurance payments and tax. If you are not declared in any capacity then I would give up now.

piglet25

I would give up now, due to not being registered etc. She may be aware of this and could make your life very difficult, but this shouldn't stop you from putting the word out on the pair of them that they are not to be trusted and she doesn't pay her bills. Some people want everything for nothing and stamp their feet when they can't have it. Its a shame they have done this to you but they could do worse so its time to make an excuse and leave the discussion.

Fire_Fox

dp313 wrote: »

I have received £50, she paid 200 deposit, 150 to web, 50 to me. I didn't disclose this to her, I didn't think I had to?

The designer has been paid in full

They owe me a remaining £190

Thanks for your advice

No, THEY do not. Your client owes you £190 if you had a valid contract - can sometimes be verbal or e-mail - NOT your subcontractor. What went on between them is a red herring, it's her problem she paid the wrong person not yours. You've been told that repeatedly but keep banging on about the quality of the work and how unfair it all is. Communicate calmly and professionally with the correct person, don't threaten all and sundry.

Having said that 'cash in hand' is tax evasion which is an offence, really not a good idea to start taking people to court if that is what you are up to. Not sure how you can prove a valid legally binding contract for a business that does not exist. Not being legitimate and professional can really bite you on the butt, you scam the taxman a client scams you.

arcon5

I don't think a judge will care about whether you've told the hMRc yet or not, of course you must declare it, but its not their job to check your tax affairs.


It's very simple:
You sue customer for outstanding amount
You pay your designer outstanding amount
Your customer pursues designer for the amount they paid them, which is not your problem.

If they are now disputing the debt as it seems, simply tell them to put their issues in writing to you so you can have them rectified but explain payment is still due.

Send a letter demanding paying from your client, don't rant or get involved in any argument about your fee... Along the lines of:
'Thank you for using my services at the total agreed price of £x, £y has been paid and an outstanding balance is due.
Please see this reaches me within 14 days before a small claims action is initiated'

Send a letter to your designer along the lines of:
'On x date I entered in to a contract with yourself to perform certain duties with my client. It is now my understanding you have taken money from my client for services rendered, despite never having entered in to a contractual relationship with this client. You have therefore breached your duty of care as a subcontractor as implied by law.
I would like to make you aware that as a result of this if I am unable to rectify this with my client or if you refuse to complete remedial work my client brings to my attention then I will seek to recover any losses incurred from yourself via the small claims court.'

Don't be tempted to get in to arguments with them or getting emotional. Be factual and to the point. If the client has issues then make it clear you can remedy these but payment is still due, make it clear to your designer if they refuse you will go elsewhere and pursue them for any additional costs incurred.

dacouch

I assume you own the copyright of the designs / branding you made.

pinkshoes

I would send a "Letter Before Action" to this 'friend', giving a full breakdown of the bill for BOTH parts, showing what your £240 fee entailed.

I would then say that as the website is now complete, after paying a deposit of £200, the balance of £540 is now overdue, and you expect payment in the next 14 days. Say that if she fails to pay within this time frame, you will start small claims court procedure against her to obtain the money owed.

Take some snapshots of the website working as "proof" in court, should she choose to take it down.

Her contract is with you, and NOT the other person, so she needs to pay YOU the full balance, then you pay the contractor, and he needs to refund her.

She has been an idiot.

somethingcorporate

I suggest you get yourself registered pretty quick.

Cash in hand work if not declared is a criminal offense and whilst it may not come up in this case it could and will look very bad for you.

Arcon's & Pinkshoe's advice is sound. LBA and then court claim for the full amount.