Hello - We have a Limited Company and we did some work, in the UK for a Dutch company and then invoiced for the work £6K including VAT. Then followed 10 months of us having to chase for payment of this invoice, with total radio silence from them. After 6 months and out of the blue they sent a payment of £2.5K and last week paid the invoice we had sent them. So we now have full payment of our invoice 10 months late and the additional £2.5K. My question is, is it reasonable for us to charge them for the time and inconvenience caused to us having to chase the payment and return them less than they overpaid accordingly. We are very tempted to at least make them wait 10 months before we decide. We'd value any legal experience/opinion. Many thanks :-).
Very late payment from overseas client and they've overpaid.
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Do your contract conditions give you the right to charge interest &/or penalties for late payment?
From a practical POV do you wish to keep the goodwill of this company because you hope to get more business from them in future? If not just send them a statement of account, without any further comment, showing whatever charges you feel like adding and leave the ball in their court. If they challenge it wait 6 months before replying. But in the meantime keep an appropriate provision in your accounts instead of taking all the overpayment into income.All opinions expressed are based on my personal experience. I am not a lawyer and do not hold any legal qualifications.
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They are entitled to be reimbursed. I agree with PallasAthena - speak to them and arrange to repay, less a reasonable charge for the late payment.
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Thank you PallasAthena - We'd be reluctant to ever do work for them again so don't feel any goodwill exists, certainly not from our side.
Thank you des8 for the links. The calculator gives a figure of £700 in interest and compensation, so that's what we'll charge. I'll also follow the instructions and wording included.
Thank you atticus - Yes agreed - I'll deduct the amount calculated as per the calculator des8 pointed us to.
I really appreciate you all taking the time to answer and provide information, again many thanks.
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