New sole trader - chasing payment

Hi,

I'm very new to this. I am a fitness instructor and started teaching on a freelance basis. The invoices are supposed to be paid every 60 days, its now 40 days overdue. Can I charge them late payment in accordance with this legislation even if I haven't stated previously?

I've sent no warnings, just lots and lots of emails to pay me. Do I need to send an official warning or can I just charge them?

Do I issue another invoice for late payment charges? If they continue to delay payment, how often can I charge a late fee? Every 60 days?

Appreciate your help!
Thanks
Ruby

Hi Ruby :)

Ruby McCormack wrote:

Hi,

I'm very new to this. I am a fitness instructor and started teaching on a freelance basis. The invoices are supposed to be paid every 60 days, its now 40 days overdue.

Before we go any further can you confirm this is a Business to Business transaction? I.e. Are you invoicing a company or commercial entity and not a private individual? It may seem like a silly question but late payment does not apply to business to consumer sales.

Can I charge them late payment in accordance with this legislation even if I haven't stated previously?

If the above answer is yes, then yes you can add costs and interest, you do not need to have mentioned it previously.

I've sent no warnings, just lots and lots of emails to pay me. Do I need to send an official warning or can I just charge them?

You don't have to send a warning but sending one prior to adding the charges may get your invoice paid without souring the relationship.

Do I issue another invoice for late payment charges? If they continue to delay payment, how often can I charge a late fee? Every 60 days?

You can use the template letter here for adding the charges, you only add the costs once but the interest can be recalculated on a daily basis.

Good luck :)