Excuse 13: Only 1p under payment
This is very similar to excuse 12 as it is
a matter of where the line is drawn. Applies where payment was short by
a small amount, possibly caught up later.
|Customer feels a small under
should not get a penalty
|Basically, the customer thinks
there should be some tolerance rather than being strict on the terms
An under payment by a small amount is usually a mistake
|Customer does not believe they
have an obligation to adhere to the agreement they have made
|Customer may has a fundamental
misunderstanding that they don't have to do
what was agreed, but that it is fair to do whatever they can get away
with and feels aggrieved that they failed to get away with paying late
when they usually do (with other suppliers).
- Small under payment is usually a mistake. The penalty invoice
gets this highlighted quickly and resolved. It may be appropriate to
cancel charges in this case but emphasis the importance of not making
mistakes. A 1p error is usually people working out VAT wrong (or
- The issue is that without the penalty invoice, nobody would
bother about the 1p, and it can make an account a mess with a long
standing 1p error. Better to get it sorted, even if good will crediting
the penalty and possibly even the underpayment.
We actually operate a system where anything under £1 is not considered to be late at all, so 1p underpayment or even 99p underpayment we do not pursue a charge even though we could.