Late Invoice? Customer not paying?

joesanders46

Hi!

I invoiced a fashion company for some couture work 1 year after work was completed.

They are now refusing to pay on the basis I should have invoiced at the time (during the fashion season) - and that their accounts for that year are filed and they therefore cannot pay the invoice?

Surely this is not right? After some online research am I not protected under Limitations Act whereby I have a time limit of 6 years to submit invoice for contracted work? Also regardless of their accounts being filed, surely invoices can be submitted to a company regardless of the status of their accounts?

Would love the help here to know what to say back! And what to do if they still refuse?

Thank you!
Joe

Barny1979

It may be that their account, which the Purchase Order number has been assigned against has been closed, so they would pay, it's just their finance systems won't allow the invoice to be paid? Maybe ask that they assign the bill to the current fashion season and you'll agree to credit last season's invoice.

joesanders46

Barny1979 said:

It may be that their account, which the Purchase Order number has been assigned against has been closed, so they would pay, it's just their finance systems won't allow the invoice to be paid? Maybe ask that they assign the bill to the current fashion season and you'll agree to credit last season's invoice.

Hi Barny, thanks for reply - there was no PO raised - it was work confirmed over e-mail. The director is being pretty stubborn and is saying "Should have invoiced in season, I am only prepared to pay last season's invoice ONLY" - so even if I offer the above it does not look like they are willing to pay regardless? 

Barny1979

You did the work, you are owed the remittance, it may be that it has to be a small claims case. The organisation I work for, if we know we have invoices to come in but don't hit year end, we take them into account and carry it over, so we don't get double-charged in the new year.

Mmills

Whilst a year after is a long time to wait to invoice it and probably does cause "problems" with budgets at their end - it doesn't change the fact that they owe you for your work.  Out of interest why did it take so long to invoice?

If you have a purchase order number from them, obviously make sure to refer to that multiple times.  I am sure a lot of info should already be included in any sale agreement as to when invoicing should take place.  

Maybe give them a small extra period to pay it due to the delay at your end.  If they refuse, then you have to make a decision - take it to small claims court (unsure of the invoice value), or write it off.  It all depends on whether you are likely to need to use them again or not?  Could you taking them to court affect work within the industry?  

Whilst I'm sure you may have a fight on your hands initially, their argument for non-payment doesn't hold up, and threats of court action may make them concede so that they don't have to pay any additional costs.

joesanders46

Barny1979 said:

You did the work, you are owed the remittance, it may be that it has to be a small claims case. The organisation I work for, if we know we have invoices to come in but don't hit year end, we take them into account and carry it over, so we don't get double-charged in the new year.

Thanks Barny - but out of interest what is the legal basis for this? Is it covered under the limitations act? Surely if a company have filed their accounts that does not mean people can no longer invoice them for that period? Cheers

JCS1

What does the contract say about invoicing timescales?

joesanders46

Mmills said:

Whilst a year after is a long time to wait to invoice it and probably does cause "problems" with budgets at their end - it doesn't change the fact that they owe you for your work.  Out of interest why did it take so long to invoice?

If you have a purchase order number from them, obviously make sure to refer to that multiple times.  I am sure a lot of info should already be included in any sale agreement as to when invoicing should take place.  

Maybe give them a small extra period to pay it due to the delay at your end.  If they refuse, then you have to make a decision - take it to small claims court (unsure of the invoice value), or write it off.  It all depends on whether you are likely to need to use them again or not?  Could you taking them to court affect work within the industry?  

Whilst I'm sure you may have a fight on your hands initially, their argument for non-payment doesn't hold up, and threats of court action may make them concede so that they don't have to pay any additional costs.

Many thanks for your response - the delay was purely down to poor admin-keeping. Unfortunately there was no PO raised - it is just freelance work confirmed over e-mail. I offered them instalment pay, but they are adamant they are only paying the most recent fashion season invoice only, not the season before. So regardless of what I offer they are always going to refuse the older invoiced work. Yes small claims court is an option, but before I threaten that what can I say I am covered under? Am I covered under the Limitations Act whereby I can invoice for work up to 6 years later? As I believe that may be the time limit to invoicing? As their grounds for not paying are for purely "I've submitted the invoice too late".... How can I challenge that?

Many thanks

TELLIT01

Send the invoice again, giving them a defined period in which to pay, accompanied by a warning that legal action through the Small Claims Court will be started if payment is not received.  That should at least make them realise you aren't simply going away.

joesanders46

TELLIT01 said:

Send the invoice again, giving them a defined period in which to pay, accompanied by a warning that legal action through the Small Claims Court will be started if payment is not received.  That should at least make them realise you aren't simply going away.

Thank you - is there anything that I can mention regarding the invoicing time limit? As he's simply suggesting it is late. Can I say under the Limitations Act invoices can be submitted up to 6 years after work carried out? I would then proceed to give warning. 

Marcon

joesanders46 said:

Mmills said:

Whilst a year after is a long time to wait to invoice it and probably does cause "problems" with budgets at their end - it doesn't change the fact that they owe you for your work.  Out of interest why did it take so long to invoice?

If you have a purchase order number from them, obviously make sure to refer to that multiple times.  I am sure a lot of info should already be included in any sale agreement as to when invoicing should take place.  

Maybe give them a small extra period to pay it due to the delay at your end.  If they refuse, then you have to make a decision - take it to small claims court (unsure of the invoice value), or write it off.  It all depends on whether you are likely to need to use them again or not?  Could you taking them to court affect work within the industry?  

Whilst I'm sure you may have a fight on your hands initially, their argument for non-payment doesn't hold up, and threats of court action may make them concede so that they don't have to pay any additional costs.

Many thanks for your response - the delay was purely down to poor admin-keeping. Unfortunately there was no PO raised - it is just freelance work confirmed over e-mail. I offered them instalment pay, but they are adamant they are only paying the most recent fashion season invoice only, not the season before. So regardless of what I offer they are always going to refuse the older invoiced work. Yes small claims court is an option, but before I threaten that what can I say I am covered under? Am I covered under the Limitations Act whereby I can invoice for work up to 6 years later? As I believe that may be the time limit to invoicing? As their grounds for not paying are for purely "I've submitted the invoice too late".... How can I challenge that?

Many thanks

Don't get yourself tangled up in legal arguments or start bandying legal jargon around. If you had agreed a sum for the work (and I trust you did?), then the relevant amount should have been entered in the fashion company's accounts as a creditor. If they didn't do that, and your poor book-keeping meant the invoice was a year late in being submitted, it's irrelevant: they need to pay unless there is a contractual agreement that invoices must be submitted within xx months of work being completed.

Head for https://www.moneyclaim.gov.uk/web/mcol/welcome and read carefully. Above all, get on with it!