Money Moral Dilemma: Do I need to keep chasing someone I owe £1,000 to?

MSE_Kelvin

This week's MoneySaver who wants advice asks...

I'm self-employed, and when I have too much work on, I subcontract it. Several months ago, I subcontracted £1,000 of work to a supplier I've been using for years. A month later, when I requested an invoice so I could pay up, I was told it'd be sent as soon as possible. Another month later, I requested it again and was told it would be sent that evening. A further two months on, I've heard nothing. I'm willing to pay, but need the invoice for my accounts. Is it my responsibility to keep chasing it or should I let it go?

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Sandtree

You sit back and await the invoice, they legally have up to 6 years to get the money from you.

No idea about your subcontractor but some are just really bad at invoicing, I've had large law firms and consultancies who were both routinely taking 9 months to invoice for work. The former when they finally did invoice were on the phone a couple of days later asking when it will get paid etc which was annoying. 

Depending on your accounting approach (eg cash or not) then just put an accrual in for the invoice to mark the liability and replace it with the invoice if it turns up.

digininja

Open a savings account and put the cash in it then forget about it. If the subcontractor ever contacts you, you have it to pay them, if they don't, give it a few years and then take it. As @sandtree says, 6 years is the legal limit, but if they've not asked after a couple, then they probably never will.

EmmaBadgeParry

Give me the address and I will invoice you!

theoretica

In work, I have a couple of times needed an invoice from a private person where the pragmatic solution was for me to write the invoice and send it to them for them to sign and return.  I wouldn't do that for a company of any size, though.

REJP

Put it in what used to be called a "Suspense" entry in your accounts and keep the money in the bank ready to pay when the invoice arrives.  When you have accounts audited it will be noted as an amount you have set aside for payment when your sub-contractor gets round to asking for the money.
Have you checked to see if the sub-contractor is still trading?  Odd that someone is not asking for payment simply by sending an invoice.  May be a simple explanation, but don't use the money that you know is owed to him/her, if it drags on put it in an interest bearing savings account noting that in your books, and be ready to pay when asked for it by invoice.
You have not done wrong and I don't see why you should waste time chasing the invoice.

Ed264

Earlier contributors have offered sound advice. Don't worry about it any longer!

[Deleted User]

You need to have the money available to pay when you receive an invoice, (although I don't see why you should rush) but definitely don't chase it.  Good to hear someone is keen to pay!

diystarter7

I hate owning a penny and can see where the OP is coming from.
I'd just mark off the 1k in a current account for when the bill arrives and pay it.

Namelesselder

I also occasionally sub contract to suppliers I know, and find it hard to get invoices sometimes. Since I have a paper trail, I send them a pro forma invoice and pay them into their account. Can you call your supplier since you’ve used them for so long? They seem to have a problem. 

Groom

As you've known them and used them before, give them a friendly phone call or email and joke that they must be doing well if they don't need the money. Then as others have said, put the money away into an account and forget about it. They may suddenly realise when their accounts don't balance.