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Invoicing a Company

Hi,

Really appreciate if someone could confirm my thoughts are correct??

I work for a small company and we have repeat customers who we do one job for then don't use our services again for another 5 years. In that time they may have incorporated from being a Sole Trader to a Limited Company or the company changes names.

I am correct in thinking that if we used the old name on a current invoice and the debt turned bad we would not be able to take the customer to court to recover the debt as the invoice technically wouldn't belong to them?

Thanks in advance

Comments

  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    I'm not a solicitor so I don't know for sure but I don't see how you could pursue a debt from an entity which technically doesn't exist any more.
  • Claire RClaire R Just Joined Registered Posts: 13
    I would agree. From my credit controller days we regularly checked the trading name and form to ensure we were billing correctly and would be able to pursue any debts if a problem occurred.
  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    mrme89 said:

    If the invoice was issued to the sole trader, it doesn't matter if they have incorporated. The debt was with the sole trader business. Pursue the debt through money claim online.

    I think what the OP is getting at is that they have actually supplied the new legal entity (ie. the company) but have invoiced the sole trade which doesn't exist any more but they have not updated their customer details. Or have I misunderstood the question?

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