Interest accumulating whilst in dispute??

[smithru]

I'm in dispute with my builder as he is trying to charge me for landfill tax he has not got liability for and hasn't paid himself. He reckons I owe him £987.
Our contract says he can charge for overdue payments at a rate of 5% per month.
I've written to him stating that as this amount is in dispute so he should not be charging/accumulating interest on the amount until we have made an attempt to resolve the dispute.The 30 days on the invoice for the amount finishes this Friday.
He's threatening to take me to court as well to recover the amount

Any advice greatfully received

Russell

[jebedee]

Re: Interest accumulating whilst in dispute??

Charging for a tax that has not been paid appears to suggest some sort of fraud. It might be wise to protect your own position and discuss this with HMRC. Don't forget to mention it to your builder to cheer him up.

[Caspar]

Re: Interest accumulating whilst in dispute??

Most solicitors offer a free initial advice visit. It might be worth you booking one of these to see what they say.

Do you have a written contract? What does it say in that?

[smithru]

Re: Interest accumulating whilst in dispute??

Thanks for your replies

Yes we have a contract which states that overdue amounts attract interest at 5% per month.I am trying to argue that as we are in dispute over this amount it is not 'overdue'.