Invoice late payment penalty charge enforcement

Salzman

Hi, I recently completed some work for a repeat client and sent in the invoice, which stated the terms for late payment fees and interest. They didn't pay on time (not first time late) so as well as daily reminders I sent an email saying the penalty was triggered and needed paying on top. They then paid the invoice but not the penalty. They have emailed admitting they were late paying, have been late paying in past, and that it wasn't my fault they paid late. However, they say they will not pay the penalty fee.

It's a few hundred pounds and I don't care about burning bridges as they are repeat offenders and think that as they are a cathedral they are above the law.

Advice please! Is the Church of England exempt from the law here? Do I need to send in a new invoice for the penalty, and does the penalty fee include VAT on the charge as well as on the interest? Am hoping to get them to settle up quickly, but if it goes to small claims court so be it

thanks

molerat

They are not above the law but then they have not broken any laws.  They have simply breached the terms of their contract with you.  Your remedy is through the civil courts.  You can send them a letter stressing that the contractual payment is due and if not paid within 14 days you will seek redress through the courts.

lincroft1710

Not above the law, but they may claim they have a higher authority to appeal to!


Personally I don't think suing a cathedral for a late payment penalty is a good idea for several reasons

DullGreyGuy

Salzman said:

Hi, I recently completed some work for a repeat client and sent in the invoice, which stated the terms for late payment fees and interest. They didn't pay on time (not first time late) so as well as daily reminders I sent an email saying the penalty was triggered and needed paying on top. They then paid the invoice but not the penalty. They have emailed admitting they were late paying, have been late paying in past, and that it wasn't my fault they paid late. However, they say they will not pay the penalty fee.

It's a few hundred pounds and I don't care about burning bridges as they are repeat offenders and think that as they are a cathedral they are above the law.

Advice please! Is the Church of England exempt from the law here? Do I need to send in a new invoice for the penalty, and does the penalty fee include VAT on the charge as well as on the interest? Am hoping to get them to settle up quickly, but if it goes to small claims court so be it

thanks

Do you have a contract with them? What does it state about payment terms? Does it stipulate the fee for late payment?

As long as your contract does stipulate the charges you are trying to levy then raise a new invoice for them. Dont call them penalties though, penalty is a problematic term.

Mistral001

As DullGreyGuy ha said, I would avoid using the word "penalty".   I would even avoid using the word "charge" as that hints that it is something extra as in effect it is really to reimburse you for your costs in connecting with a late payment and nothing more.  Anything more than that would be considered a pure penalty and not valid under contract law as far as I know.  It is up to you whether you should insist that this payment is made, but if you do insist that it is made, then I think you have to insist it is made by all your late-payers in my view.  In 25 years I did not insist that it was paid even though it was mentioned in my invoice.  In the days of high interest rates these extra payments were quite critical  as you did not want to be a bank for customers.  In recent years with lower interest rates they are harder to justify.