Late Payment and Public Authorities- Help

Hello , I need your advice on a current matter I am facing.

I am a Sole Trader who is currently working for a Local Authority body. No payment has been made for my services. Cost of work is £2455.00

Background information:-

In May 2011 I gained a contract to work for a local authority body. The work was agreed for a period of time May 2011 - Dec 2011. A service level agreement was issued and I was paid for my services ( May 2011 - Dec 2011)

In Sept 2011 I met with the manager to discuss working for them again. It was agreed that work should commerence from Sept 2011- April 2012. We also discussed Service Level Agreement - and that it was being reviewed and will issued shortly.

In Dec 2011 , I calld the Manager and asked when the SLA will be issued , I was told after in New Year and it was still under revision. I also asked the Manager whether I could issue an invoice, I was told no until I received the new SLA.

- I started work without the Service Level Agreement and issued my first invoice on 27th Feb 2012 for services delivered in Oct 2011- Dec 2011 I called the Manager and expressed my concern regarding the Service Level Agreement and was told that it will be issued after the Easter Break. I then issued two more invoices for my services.

- After numerous emails, - I requested a meeting with the Manager - we met on the 4th April 2012 and I was handed a SLA in the meeting. The Manager told me that the old SLA was extended - DATE : May 2011- April 2012 - the SLA financial Arrangements states for me to issue invoices on a half term ( six weekly) basis.

- To date, after several emails, I am now want to issue a letter of late payment - My questions are:
- Can I charge interest and compensation cost for this late payment?
- Is the SLA breached by the Local Authority body?
- Also can I claim for the financial debt they have caused my business to incur?

I am sorry this is sooo long.

Thank you

Imani wrote:

- To date, after several emails, I am now want to issue a letter of late payment - My questions are:
- Can I charge interest and compensation cost for this late payment?

Yes you can. The issue will be at what point the invoice became overdue. Based on what you have said and in the absence of an agreed SLA we would suggest the default 30 day payment terms would apply.

Imani wrote:

- Is the SLA breached by the Local Authority body?

No idea, that is a question for a solicitor.

Imani wrote:

- Also can I claim for the financial debt they have caused my business to incur?

As a general rule, no you can not. Unless your contract or T&C's state this is the case and they have been agreed by the customer you are limited to fixed costs and interest as listed under the legislation.