Dealing With Bad Debtors - Lynne Garner
Sadly I'm not the only freelance writer who's had to wait (sometimes months) for a client to pay what they owe for work completed. So last year when I became aware of a petition that called for the government to pass a law to force employers to pay on time for freelance and contractual work I signed it. Today (07/01/17) I received a reply which I felt may be of interest to freelancers and contractors. So here it is:
"A party acting in the course of a business can
claim interest and reasonable recovery costs if another business is late paying
for goods or a service.
A party acting in the course of a business can claim
interest and reasonable recovery costs if another business is late paying for
goods or a service, under the Late Payment of Commercial Debts (Interest) Act
1998.
In April 2017, the payment practices reporting requirement
will come into force. This will require large companies and LLPs to report
publicly on their payment practices and performance, twice per financial year.
This transparency will help suppliers, including small businesses such as sole
traders, make informed decisions about who they do business with.
Also in 2017, we will be appointing the Small
Business Commissioner, who will support small businesses in resolving payment
disputes. The Commissioner will provide general advice and information, direct small
businesses to existing dispute resolution services, and handle complaints about
payment issues. Small businesses, with fewer than 50 staff, will be able to
access the services of the Commissioner – these businesses include
self-employed individuals.
There is also the voluntary, industry-led Prompt
Payment Code, which is about encouraging, promoting and setting an example of
best practice between organisations and their suppliers. More than 1800 firms
are signed up to the Code, which you can see at: www.promptpaymentcode.org.uk"
Although this is a step forward it would be even better if we could get this debated in parliament and more could be done to support freelancers like myself and many of my friends. As I write this post the petition stands at just over 11,000. To get it debated we need 100,000 signatures by 8th May 2017. So if you're a freelancer or contractor and feel you can add your name then please click HERE to sign the petition.
Thanks
Lynne
Now for a blatant plug:
My latest short story collection Coyote Tales Retold is available on Amazon in ebook format. Also available Meet The Tricksters a collection of 18 short stories featuring Anansi the Trickster Spider, Brer Rabbit and Coyote is available as a paper back and an ebook.
I run the following online courses for Women On Writing:
Comments
Here is the link to the government site that tells you how to calculate the interest
https://www.gov.uk/late-commercial-payments-interest-debt-recovery/charging-interest-commercial-debt
I once asked a musician of my acquaintance what he would do if the venue he was playing at refused to pay at the end of the evening. He said, "Explain that I need to pay band members, meals, hotel bills, petrol, insurance on van and instruments etc, etc and need the money now." Fine, I said, but what if the manager still refuses to pay? "Then I threaten to punch him," he said. As he was a very big bloke with muscles developed from being his own roadie (ditto a couple of his band members) I daresay he then got his money.
I've been lucky, I suppose and I'm sorry to hear others have had so much trouble. Schools mostly pay up. My worst was a school where I was unavoidably late due to rail delays (suicide on the line) and the English teacher tried to 'fine' me by offering substantially less than my fee or nothing. I spoke to an SoA lawyer and was told, "Write to the Head and say you're placing it in the hands of the SoA. You won't have any more trouble." He was right. I had an apology by phone from the Head and the cheque arrived the next day. - I was sorry to do it to the teacher, who teacher-friends told me would have 'got a b*llcking' - but hell, I needed that money. The teacher had a regular salary. I didn't.
Umberto - How right you are. I won't name names but trying to get just £45 out of a well known large British company once took almost a year. I've been told by media friends this company is horrendous for paying one-off payments but once you're on their books it gets easier if not quicker.
Chris - What a good idea. I may just do something very similar.
Susan - I've quit doing school visits. Those I've dealt with try to haggle and as you pointed out they're on a regular salary and as a freelancer we're not. I had one school employee tell me once I'd told her my fee that she was in the wrong job. When I asked her who paid her NI, TAX, insurance etc. and explained I had to cover all those costs myself she quickly retracted her statement.
Katherine - That's horrendous. If you're a member of the SOA get them on the case they are exceptionally good at what they do.