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What to do when they pay the original invoice value but don't pay the interest & compensati?

  • Horror Bags
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1 year 9 months ago - 1 year 9 months ago #3344 by Horror Bags
I have had several clients now that have settled their original invoice values but have not paid the interest or compensation fees. What recourse do I have? How should I account for this? Do I need to raise a new invoice/statement? Or do I just pursue via email and or letter?

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1 year 9 months ago #3346 by j.salmon@cpa.co.uk
Hi

This is always a difficult one as the compensation and interest are not usually large enough to justify extensive work in collections.

It also depends on your relationship with them and whether there is on going trade.

You are fully entitled to continue to pursue it.

You could invoice it and keep the balance on the clients account. There is no requirement to raise an invoice though as it is not a vatable supply. But most accounts packages needs you to raise an invoice in order to recognise the debt.

How much time and effort you decide to put into pursuing it will be a commercial decision. Although for many it is a matter of principle.

You could go as far as applying for it via moneyclaim. Sometimes just telling people that you will take that step next is enough to make them pay the compensation.

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