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Small debt against limited company.

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  • Small debt against limited company.

    Happy New Year to All

    Thank you in advance for any tips/pointers.

    My son is owed £360 for a job he did in November 2018 - yes 2018! He had a conversation with someone at the company last July chasing payment and sent them dets again,but they still didn't pay. At end of November just gone I emailed them (I now help with my son's accounts) and attached job sheets and invoice and emails proving the job was approved at the stated price etc, and asked for payment. So it's now been more than 30 days, and they've not paid. I checked Companies House and they are not short of money. I'm now considering the small claims route. So plan is to send them a 'Letter Before Action' email giving them two weeks to pay, after which we'll (meaning me as I'll do the leg work) issue small claims proceedings. I have two questions: if I go through the process of initiating action in the small claims court but then they pay up, do we lose the £35 fee, and is it easy for us to cease the action if they do pay? I cannot see how they could have any defence as emails prove job was approved at the price agreed before work was carried out, although the guy who my son originally dealt with no longer works there. Thank you. PS: I tried to telephone their accounts department to speak to someone but conveniently there is no phone number for accounts, only an email address, which is very frustrating.
    Tags: None

  • #2
    Your claim would be for 360 + 35 = 395. Personally I would add on more for my administration charges (I assume your son is self employed ?)
    If they sent you 360 (or any other sum) it would be up to you to either accept it and cancel the claim or carry on with the claim.
    It's pretty easy to discontinue a claim, you can do it all online. In fact if both parties do nothing it will just get struck out anyway.

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    • #3
      Thank you so much, Luxardo, that's really helpful.*

      Comment


      • #4
        Might be worth googling "Late Payment of Commercial Debts (Interest) Act 1998"

        Comment


        • #5
          Thanks vm PlodderTom, a good point, will do.

          Comment

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