Anybody top this chasing for a invoice to be paid.
We emailed all CIS subcontractor clients before start of new tax year that we expect are fee to be paid immediately from when they receive repayment (silly I know should be upfront or paid to ourselves) if they don't adhere to this then going forward after that they will be asked to be paid up front.
So wait for this subbie who didn't bother to listen
One subbie received his repayment 2 weeks ago, and invoice not paid he said he lives 20 miles from a bank and he would pay it soon, (what does he want us to do drive him to the bank)
Gave him a week and called yesterday to advise hasn't been paid his comment was "if your that desperate for it I' will pay it today" quite frankly we nearly lost the head with the client for that comment, he called back saying he would make payment and surprise surprise didn't.
How do you win?
Related resources
Replies (7)
Please login or register to join the discussion.
You obviously know that 'possession is nine-tenths of the law' - since you say "silly I know should be upfront or paid to ourselves".
I learned that lesson in a different context many decades ago, whilst working for a company that was facing financial meltdown due to a shortfall in new business.
On my own initiative I pulled a deal together (with the Royal Marines of all people) that would buy us another 3 months to get sorted - and presented the signed agreement to the CEO.
He was duly grateful ... but when I suggested there might be some commission payable to me (we had a salesforce that would've been paid if they'd pulled their finger out), he just laughed and said:
"If you'd negotiated with me *before* handing over the agreement, then I'm sure we could have sorted something out. But I don't need to *now*! Let that be a valuable lesson to you."
Some people (possibly including some of your clients) really can be that stupid.
I handed in my notice there and then ... but what you do is up to you.
Dump that client after payment is my advice.
Secondly, learnt a long time ago to not wait for fees from refunds.
Payment upfront or find another accountant.
There are a hand select few who I bill after but that's because of years of trust.
I don’t understand why you would wait for something that is outside your control, ie a clients refund, for your payment.
Get him back in the phone and when he says he will pay you now take his credit/debit card number and take the payment. Use one of the many apps that allow such one off payments. The guy is taking you for a ride.
Rule number 1 with CIS clients always have the refund paid to yourself or invoice up front.
Yep or at the very least, tempt the client with a clue as to how much the refund will be and how they won't get it until payment is received.
Your system might work some of the time but is ultimately set up to fail.
Either (a) cash before filing, end of
(b) run a client account, take the refund and pay net of fees.
I do (a), (b) is a flippin nightmare from a regulation POV but I know many CIS accountants do this, and your CIS clients might expect it. I dont do CIS, for this and other reasons.
Good systems remove points of potential conflict, and help your cashflow too.
As well as a regulatory PIT, there's the years (specifically the SEISS ones) where tax rebate is less than fees - or worse, when there is a tax bill (p/t CIS). It's harder to explain refunds being lower than fees, or having a tax bill AND a fee, than to hand a bill for the full amount!
Payment up front is the key. I strangely find subbies become quite keen to pay when a significant rebate is at stake!