Paying old invoices (18 months old)

[mdj101]

Hi All

A company I deal with has decided to send me some invoices for items that I apparently had 18 months ago (i've not checked them all yet)

I've never had these invoices before and always pay their issued invoices on time.

Is there a time limit? These invoices go back to the middle of 2010.

All the accounts have been done all the VAT and corporation tax etc paid...

Surely their own accountants should have picked up on stuff like this?

 

[arcon5]

Statute of Limitations is 6 years, if you owe the money they can chase for it. You need to establish this

 

[FirstAidTraining]

Hi All

A company I deal with has decided to send me some invoices for items that I apparently had 18 months ago (i've not checked them all yet)

I've never had these invoices before and always pay their issued invoices on time.

Is there a time limit? These invoices go back to the middle of 2010.

All the accounts have been done all the VAT and corporation tax etc paid...

Surely their own accountants should have picked up on stuff like this?

I had a similar experience, where I was sent invoices going back more than two years in some cases, that an agency that was used at the time, claimed remained outstanding.
I first checked with our accounts dept. they would have to be paid, given the length of time that had lapsed. They informed me they would need to be paid, so long as I was satisfied the money was owed. On checking the bookings for that time period, there was a clear record of them supplying us, and no record of an invoice for that time being issued or paid. So they were legit.
They totalled quite a bit of money, so I argued with the agency (who we were still using at that time) by paying them, they were effectively going to put me overspent in that budget heading, and their incompetence was incredible, to leave invoices for such a large amount outstanding for two years! They agreed to give me a credit note as a good will gesture, so I paid the invoices in full, and got a credit note for 50% of the amount added to our account for the aggravation.
You could try arguing the point! Good luck.

 

[MOIC]

I think they must provide you with a statement or a reminder, at least one time in a 12 month period. (This is a recent law which came into effect within the last few years). This is a technical point.

Check it out.

If you must pay, agree a figure (50% - 60%) with them and pay over a period of time (12 months).

Ron
MYOFFICEINCHINA

 

[woodss]

Six years? Man, a business (and its finances) can change so much in that time.

Incidentally, I hope to one day have a business which can survive without cashflow for 6 years!!

 

[mdj101]

Thanks Ron.

I will talk to my accountant tomorrow and find out more on the 12 month rule.

 

[arcon5]

Six years? Man, a business (and its finances) can change so much in that time.

Incidentally, I hope to one day have a business which can survive without cashflow for 6 years!!

Well these kind of situations will be few and far between, most likely a administrative or technical error. Most businesses will be quickly on you once an invoice falls late.

 

[Sonicacredit]

Hi,

I think that you will still be required to pay this. Statute barred only comes into play when the debt has not been chased for 6 years or more. As this is 18 months old, i don't think there is anything you can do. I work in Credit Control and i have never heard of such a 12 month ruling. . . I could be wrong though. My advice would be to try to arrange a payment plan with the creditor after explaining that you have not had a notification for nearly 18 months. Try to stay on their good side, as if they wanted to they could apply late payment charges and interest.

 

[mdj101]

Sonia

You are wrong. They cannot apply late payment charges and interest unless they can prove that they sent me the invoices and regular statements. They also then need to send a letter to outline their late payment charges.

Problem is his invoices are always a mess and there are always items missing, incorrect or overcharged. So trying to remember if something is correct 18 months ago is impossible.

He also has no signed delivery notes for ANY of the invoices.

 

[Sonicacredit]

Under late payment legislation, they are able to apply a fixed cost for late payment if this falls outside the agreed terms on the invoice. . .

 

[mdj101]

But like I said, The invoice was never supplied!

 

[Sonicacredit]

Okay, then obviously they won't be able to do that then. . . sorry mate, i was only trying to help. I'd just give them a call and see what you can arrange. I don't think there's any legislation in place to back you up unfortunately. . . Like i said i may be wrong, but i've never heard of it.

 

[christian_d]

I edited this post after seeing the above... Sorry.

If you havn't got copies of any delivery notes, then don't call them to talk about payment terms and reductions

Ask them for P.O.D's as you can't pay invoices without them, especially after so long.

See what they come up with.