Total Amount in UK Contracts & Invoices: Meaning, VAT, How to Check

What Is the Total Amount Payable, Owed or Invoiced?

The total amount payable, sometimes called the total amount owed or total in contract, is the full sum due under a contract or invoice, including all agreed fees, taxes (such as VAT if applicable), and any deductions stated within the agreement. It represents the legal and financial obligation that must be settled in full by the party responsible for payment.

In-Depth Explanation

The total amount payable plays a central role in England and Wales for both business and consumer contracts, as well as in commercial invoicing. Legally, it is the definitive sum the paying party must transfer to fulfil their obligations under a signed contract, order, or invoice. This amount will often appear in clear terms within the body of a formal document, or as a final calculation at the bottom of an invoice.

This term applies whenever goods or services are sold, work is undertaken for a fee, or a contractual obligation creates a debt. The parties affected include buyers, sellers, contractors, service providers, customers, and anyone involved in a transaction with a written or electronic record stipulating a “total amount payable” or equivalent sum.

Why it matters is simple: the total amount indicates the exact amount that can lawfully be required (or enforced) if a dispute arises or legal action is taken. If not expressed accurately, parties risk confusion as to what is due, the impact of VAT, or whether certain extras, discounts, or penalties are included. Unclear or incorrect totals can cause payment delays, legal disputes, and lead to additional costs such as statutory late payment interest under the Late Payment of Commercial Debts (Interest) Act 1998.

For the paying party, the risk is overpayment or payment of unexpected charges. For the receiving party, errors may lead to non-payment or court challenges. Documentary evidence of the total, how it was calculated, and whether all regulatory taxes (such as VAT at the prevailing rate) are included, is vital for enforcement and audit compliance.

Example in Practice

A small business issues an invoice to a client for web design services. The invoice lists a service fee of £2,000, adds VAT at 20% (£400), and deducts a £200 deposit already paid, resulting in a total amount payable of £2,200. If any of these components are missing or incorrect, the client could dispute the invoice or delay payment until the correct total is agreed.

Why the Total Amount Matters

Understanding and correctly stating the total amount in contracts and invoices is legally essential. It provides certainty to both parties, sets clear payment expectations, and forms the core reference point in any negotiation, dispute, or court claim. Miscalculating or omitting part of the total exposes businesses to risk, including underpayment, overpayment, or enforcement issues.

Having the amount clearly set out protects both sides by ensuring there is formal agreement on the full cost, including VAT and other deductions or extras. This clarity is particularly important for businesses, sole traders, and consumers seeking to avoid disputes and regulatory penalties.

Key Features of the Total Amount

  • Core legal requirement: Must accurately state the full sum due under a contract or invoice.
  • Legal threshold: Always includes all contractual charges, applicable VAT, and agreed deductions.
  • Compliance obligation: Businesses must display the total, including VAT if registered, to meet statutory invoicing requirements.
  • Risk factor: Mistakes, omissions, or unclear totals can lead to legal disputes or penalties.
  • Enforcement consequence: If disputed, courts rely on the documented total to determine what is owed.

Legal Framework Governing the Total Amount

The total amount payable in contracts and invoices is regulated by several statutes and principles. The Companies Act 2006 and the Value Added Tax Act 1994 require compliant invoicing, with VAT-registered businesses obliged to show the VAT-inclusive total. The Late Payment of Commercial Debts (Interest) Act 1998 entitles creditors to add interest and recovery costs if payment of the total is delayed. Regulatory authorities such as HMRC and Companies House oversee compliance and can investigate errors. Courts in England and Wales interpret the ‘total amount’ strictly according to written agreements and supporting evidence.

Common Examples of the Total Amount

  • An employment contract specifies the total annual salary payable, including basic pay, company pension, and any contractual bonuses.
  • A supplier invoice shows the subtotal for products sold, adds VAT, and lists the total invoice amount at the bottom to be paid by the customer.
  • A building contract sets out the total contract price, summarising all material, labour, and permitted extras, providing a fixed sum for the project.

Best Practices for the Total Amount

  • Ensure all elements—base price, add-ons, discounts, VAT—are included in the calculation and clearly itemised.
  • Check that the contract or invoice shows the gross total and states whether VAT is included or not.
  • Retain documentation showing how the total was calculated for at least six years for audit and compliance purposes.
  • Use standardised templates or legal review tools to minimise risk of errors or omissions.
  • Seek legal advice if there is doubt about what should be included as the total, particularly in complex or high-value transactions.

Legal Documents for the Total Amount

This term commonly appears in formal contracts, legal agreements, and invoices in England and Wales. Accurately stating the total amount is essential for clarity and enforcement in these documents.

  • Service Agreement — Specifies the total payable for contracted services, including VAT breakdown and payment schedule.
  • Sales Invoice — Clearly states the total invoice amount owed, incorporating all products, delivery charges, discounts, and applicable taxes.
  • Consultancy Contract — Details the total amount payable under the consultancy arrangement and how it is calculated.
  • Building Contract — Sets out the total contract sum, covering all agreed works, materials, and relevant taxes.
  • Loan Agreement — States the total amount owed or repayable over the life of the loan, including interest and fees.

Common Misunderstandings

Many people believe the total amount payable always includes VAT, but under UK law, a contract or invoice must specify whether VAT is included or not. Some assume the total is not enforceable if miscalculated, but courts may still enforce payment up to the fair value stated in underlying documents. It is often incorrectly thought that only businesses need to show the total amount, while in fact, sole traders and individuals must also comply in legal agreements and invoices.

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💡 Real-World Examples of Total Amount Payable

To understand how this typically arises in practice, consider the following scenarios in England & Wales:

📌 Example 1: VAT Omitted from Total Invoice Amount

Amira, a freelance web designer in Manchester, sends her client an invoice for £3,000 for a completed website project. She forgets to include VAT in the total invoice amount, displaying only the net service fee. When the client pays just £3,000, Amira realises she is short £600 and must cover the VAT from her fee. This oversight exposes her to cash flow problems and potential HMRC compliance issues for failing to charge and account for the correct total amount owed by the client. For small businesses, clearly specifying whether the total includes VAT helps avoid costly invoice disputes and tax penalties.

📌 Example 2: Disagreement Over “Total in Contract” After Scope Change

James runs a building firm in Leeds and signs a written contract with a property developer to renovate offices for a fixed price of £42,000. During the project, the developer requests additional work but the updated “total in contract” is not agreed or documented. At completion, James issues a final invoice that includes an extra £8,000 for the added services. The developer refuses to pay more than the original £42,000, arguing the signed contract sets the “total amount payable.” Because the contract's total figure was not formally updated, James risks being unable to recover the additional amount, highlighting why precise and updated contract totals are essential for payment security.

📌 Example 3: Landlord-Tenant Dispute Over Total Amount Owed After Rent Increase

Priya owns three flats in Birmingham and issues annual tenancy renewal documents to her tenants. This year, she increases the rent but only updates the monthly figure in the renewal letter, not the summary field for the “total amount owed” for the year. One tenant assumes the old total applies and pays less than expected. Priya faces delays in recovering the shortfall, and confusion leads to a formal tenancy deposit dispute. Failing to accurately reflect the total amount in legal documents can disrupt cash flow and expose landlords to compliance risks with the deposit scheme, especially if tenants challenge calculations.

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❓ Common Questions About Total Amount in UK Contracts & Invoices

Our expert solicitors answer the most common questions about the total amount in UK contracts and invoices, helping you understand your rights, obligations, and practical next steps under England & Wales law.

  1. Does the total amount on an invoice or contract legally include VAT in the UK?

    The total amount on a UK invoice or contract should include VAT if the supplier is VAT-registered and VAT applies to the transaction. By law, invoices must clearly show whether the displayed total includes VAT or not, to avoid any confusion. If VAT is not expressly indicated, you may be able to dispute the calculation.

  2. Can I dispute the total amount stated in a contract or invoice if I believe it is wrong?

    Yes, you can challenge the total amount if you think there is an error, overcharge, or hidden fee. The first step is to raise the issue with the other party in writing, providing clear reasons and relevant evidence such as contract terms or itemised breakdowns.

  3. Is the total amount in a contract always enforceable in England and Wales?

    A total amount is only enforceable if it is clearly set out in a legally valid contract or invoice and accurately reflects the parties' agreement. If the total includes ambiguous charges or was calculated unfairly, the court may not uphold it.

  4. What happens if I pay the wrong total amount, either too much or too little?

    If you underpay, you may be in breach of contract and could face legal action or additional charges. If you overpay in error, you are legally entitled to request a refund for the overpaid sum, provided you act promptly and have supporting evidence.

  5. Does the total amount owed or payable ever exclude certain costs or fees?

    The total amount should cover all sums agreed, but sometimes hidden charges, late payment fees, or third-party costs are omitted, either accidentally or by design. Always check the contract or invoice small print and ask for clarification where totals seem unexpectedly low or high.

  6. Are there time limits for challenging a total amount on an invoice or contract in England and Wales?

    You generally have 6 years from the date the sum became due to bring a court claim about an unpaid or disputed amount. However, commercial practice dictates that you should raise any issues as soon as possible to preserve evidence and strengthen your position.

  7. How can I create or manage a total amount properly?

    We offer lawyer-approved templates and AI-powered document tools to help you draft, review, or check the total amount in any contract or invoice, ensuring complete transparency and compliance. Our platform allows you to generate breakdowns, review VAT, and reduce the risk of disputes. Get your total amount template now.

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Karim provided a great service and allowed me to understand the process much more. All cases have a tremendous amount of moving parts which were well explained. Recommended.

DPM Construction

18-06-2024

Karim is very knowledgeable in his field. Great Platform

Karim is very knowledgeable in his field, gives great advice and most importantly is very easy to communicate with.

Speaking with some solicitors can be an intimidating process but Karim’s easy going approach is a breath of fresh air.

Highly recommended!

M S

02-06-2024

Excellent experience with Karim at Go Legal Ai

Excellent experience with Karim.
He was very helpful, polite and an excellent communicator. He is competent and professional
and responded always very quickly to our questions.
We highly recommend Karim.

RS

30-09-2024

Right from the start I knew we were in safe hands with Go Legal Ai

Right from the start I knew we were in safe hands, we had a consultation with Karim and discussed our case with him. We were given a clear strategy at the outset and everything panned out as he predicted. I cannot recommend Karim enough for any legal matter.

Sam

09-01-2024

Karim helped us resolve a commercial dispute...You're in safe hands

Karim helped us resolve a commercial dispute. I would highly recommend him. He’s very competent and caring throughout the process. And involved us in the decision making to get a successful outcome. You’re in safe hands.

May

08-12-2023

Best legal platform for all your legal needs

We have used several lawyers over the years Karim has been the best! He is passionate and has genuine intention to help clients get the best outcome. Always available for us whenever we need his help

Yousuf

08-12-2023

Excellent platform

Many thanks for your excellent work on my behalf, I extremely appreciate your help. You were so thorough, persistent, fair and transparent. I shall always say, I had the best possible solicitor to fight my cause. Thank you!

Evgenia

09-12-2023

Excellent legal support and advice

Karim has assisted in commercial ligitation. He was very helpful, pro active support and gave detsiled advice. I will be using their services in the future for all of my legal requirements.

Asim

24-05-2024

Grateful for an amazing DIY legal platform

We are grateful to Karim who helped our small business recover a debt within a few weeks. Very attentive even outside of normal working hours. Thank you so much!!

Gazi

26-01-2024

Impressive and exceptional service

I recently had the pleasure of working with Karim from Go Legal, and I am beyond impressed with the exceptional service I received. From the very first consultation, it was clear that Karim is deeply knowledgeable and genuinely invested in understanding every aspect of my case. His compassion and dedication to his clients are truly unparalleled.

If you’re looking for a legal firm that combines expertise with a personal touch, look no further than Go Legal. Karim and his team are truly a standout in their field, and I wholeheartedly recommend them to anyone in need of legal assistance. Their dedication to their clients’ well-being and their unwavering pursuit of justice make them an invaluable ally in any legal matter.

Raj

09-07-2024

Professional and very friendly legal platform

Karim, is very friendly and professional. We reached out for advice and process for what we believed was a contract breach issue.

Karim demonstrated a great understanding of contract law and provided invaluable guidance every step of the way – from our initial consultation to the resolution of the matter,

They took the time to thoroughly review the details of my case, patiently answered all of my questions, and provided clear and concise explanations of my options.

Thanks to their expertise, the contract breach issue was resolved efficiently and favourably.

I wholeheartedly recommend Karim to anyone in need of legal assistance. Their professionalism, expertise, and genuine care for their clients truly set them apart. If you’re facing a contract breach or any other legal challenge, look no further.

Samantha

15-04-2024

Honestly the best solicitors

Karim and his team are a god send. We have been dealing with a breach of contract construction dispute for several months which has caused us stress and anxiety. Karim was able to resolve it for us in a few weeks. Honestly the best lawyers I have come across. Diligent and well thought out advice.

Dominic

15-04-2024

Excellent all round!!!

Karim Oualnan at handled a contractual case to a successful resolution. Karim was diligent, always providing great, honest advice in which Karim always put my best interests at the forefront of his suggestions during the case. He is very reliable, trustworthy and always on hand to help. I would highly recommend Karim and look forward to working with him again in future.

Derrick

15-01-2024

Karim is a standout lawyer!

Karim is a standout lawyer! His approach is very strategic and always has the best intentions of the client in mind throughout. I would highly recommend him if you’re looking for a lawyer. You’re in safe hands!

Ceren O.

09-01-2024

Karim is an incredibly meticulous and astute lawyer!

Karim is an incredibly meticulous and astute lawyer who applies a high level of skill and intelligence to his work. There is no one else that I can think of who I would go to solve a commercial dispute due to his ability of solve problems and see the commercial angle and importance of legal issues. As is evidenced by his career so far he is very comfortable with leading on complex matters and you can trust that he will produce an excellent quality of work. He is also incredibly personable, diligent and hard-working.

Ross

13-12-2023

Karim was amazing

Karim was amazing, quick and effective just what you need. Very professional and makes it easy for you to understand everything. Always there when we need help and times of need. Worth every single penny!

Ant

09-05-2024

Absolutely super service and platform!

I received follow up legal advice from Karim that was extremely helpful and really helped me to clarify my situation and decide on my case progression

Absolutely super service.

Paul

09-07-2024

Very reactive and called within minutes. Great platform

Very reactive and called within minutes. Offered us lots of great advice which he didn’t need to offer up for free. Would recommend

Sonny

19-02-2024

Highly recommended

I have known Karim for several years and have nothing but praise for the way he conducts himself professionally. He is an outstanding Litigation Solicitor dedicated to achieving the best solutions for his clients. He is highly recommended

Khurshid

04-07-2024

Great Advice!

I recently worked with Karim at GoLegal and couldn’t be more pleased with the service I received. He provided exceptional advice regarding trademarks and offered valuable business insights. His expertise and thoroughness were evident in every interaction. I highly recommend Karim and GoLegal for anyone seeking professional and insightful legal guidance.

Kyle

30-05-2024

Professional, highly recommended

Thank you so much Karim for your Legal advice
Professional, friendly and helpful
I cannot be more grateful

Highly recommended

Angie Jo Fitness

17-01-2024

Legal Advice

It was astounding how much legal knowledge and experience Karim and the team possessed. They gave good legal advice and handled complicated legal matters with ease. Their handling of delicate situations with professionalism was admirable.

Jabel

26-05-2024

Go Legal Ai

Go-legal Ai has very professional and well mannered people who work hard to make sure your enquiries are dealt with as soon as possible.

Mar

20-02-2024

Second to none - Amazing!

Having spoken to multiple solicitors in the past few weeks I was at wit’s end, I was just as low as could be until I found Karim who gave me the confidence to keep going, his knowledge of my predicament was second to none.

James

19-06-2024

Karim gave me valuable advice and was very helpful

Karim gave me valuable advice and was very helpful
when i was unsure weather to pursue a claim for a Construction contractual dispute.

Jon

28-05-2024

Amazing service and experienced staff at Go Legal Ai

Amazing service and experienced staff. Help and advice was top quality and especially recommend Karim as giving a level of quality service above expectations. Thank you

Abdul

04-07-2024

Amazing service

Amazing service! He’s thorough and ensures no detail is overlooked. With his extensive expertise, he provided me with confidence and reassurance during our legal proceedings. Karim was efficient from beginning to end, and his friendly demeanor made it an unparalleled experience!

Zubair

12-05-2024

Karim was able to offer us some great advice

Karim was able to offer us some great advice in consultation. Very knowledgeable and considerate. Thank you Karim.

Sophie R

23-03-2024

Highly recommended lawyers

I highly recommend Karim as a commercial solicitor. While he worked on my matter, I was extremely impressed with his expertise, professionalism, and client-focused approach. He is a trusted advisor who will provide you with the expert legal advice you need to make informed decisions.

Remi

12-12-2023

Amazing in every way

I recently sought legal representation for a challenging litigation case and go-legal exceeded my expectations in every way. From the initial consultation, it was clear they were experienced and truly invested in getting the best outcome for me.

Karim, was particularly exceptional. His profound knowledge of the law and insightful strategies were invaluable throughout the process. He kept me informed, addressed all my concerns with patience and clarity, and consistently demonstrated genuineness.

Another massive thank you

SB

08-01-2024

5 stars!!

Karim and his team have been excellent in helping our company navigate the regulatory environment in the online competitions and gaming sector. His legal expertise has been invaluable in recent months, and we’re extremely grateful for his knowledge and support.

Liam

16-08-2024

Thanks from core of my heart!

I am writing to express my deepest gratitude for the service Ms.Zareen provided in securing the approval of my child’s Dependent visa following the initial refusal.

From the very beginning, her dedication and professionalism were evident. She took the time to thoroughly understand our situation, meticulously reviewed all the documents, and provided clear, concise guidance on the necessary steps to strengthen our case. Her expertise and strategic approach played a vital role in overturning the refusal.

I particularly appreciate how she maintained clear and constant communication, ensuring we were informed and reassured throughout the process ,showed remarkable attention in preparing our documents & displayed genuine compassion and understanding, which made a stressful situation much more manageable.

Thanks for her hard work and expertise.
We are incredibly grateful for the positive outcome.
Her efforts have had a profound impact on our lives, and we cannot thank you enough.
I will wholeheartedly recommend the services to anyone in need of immigration assistance, knowing they will be in the best hands.

Shah

04-08-2024

Thanks from core of my heart!

I am writing to express my deepest gratitude for the service Ms.Zareen provided in securing the approval of my child’s Dependent visa following the initial refusal.

From the very beginning, her dedication and professionalism were evident. She took the time to thoroughly understand our situation, meticulously reviewed all the documents, and provided clear, concise guidance on the necessary steps to strengthen our case. Her expertise and strategic approach played a vital role in overturning the refusal.

I particularly appreciate how she maintained clear and constant communication, ensuring we were informed and reassured throughout the process ,showed remarkable attention in preparing our documents & displayed genuine compassion and understanding, which made a stressful situation much more manageable.

Thanks for her hard work and expertise.
We are incredibly grateful for the positive outcome.
Her efforts have had a profound impact on our lives, and we cannot thank you enough.
I will wholeheartedly recommend the services to anyone in need of immigration assistance, knowing they will be in the best hands.

Shah

04-08-2024

Went above and beyond

Karim was easy to work with. Slight communication hiccup at the start, but more than made up for it with the work he did on my case. Happy with the outcome.

Jake

04-06-2024

Absolutely amazing

Karim has been so so great, he helped me throughout the whole process and even after. 100% recommended

Kd

17-06-2024

Karim has been absolutely amazing

Karim has been absolutely amazing, really helpful and responses were always really fast. I would 100% go back!

Kd

01-03-2024

Exceptional legal expertise and compassionate support

I am extremely pleased with the legal services provided by Karim and his team. Their expertise, professionalism, and prompt communication made a significant difference in my case. I also appreciated your display of empathy and understanding during a potentially stressful period for me. Your compassionate approach was truly valuable – a massive bonus for me personally. Highly recommended!

Justin

09-12-2023

Karim provided exceptional service

Karim provided exceptional service, demonstrating a high level of professionalism and competence. He was thorough, responsive, and always ensured that my needs were met promptly and efficiently. His expertise and attention to detail were evident in every interaction, making the entire process smooth and stress-free. I highly recommend Karim for his outstanding service and dedication to excellence.

TW

01-06-2024

Karim is an immaculate professional

Karim is an immaculate professional, going above and beyond to excel in his service. Couldn’t recommend highly enough!

Aman

11-12-2023

Exceptional service from Go Legal Ai

Karim was exceptional at providing me advice to my matters. He was attentive, knowledgeable and approachable. Moreover, GoLegal is a great platform for open-sourced legal information.

Antonio

30-04-2024

Go Legal Ai helped me a lot!

The owner of Go Legal helped me with the process of filing a pre-action protocol proforma and it went smoothly. I totally recommend their professionalism and also dedication.

Muizz

08-12-2023

Karim is an amazing asset to have in your corner

Karim is an amazing asset to have in your corner. Can’t recommend him and his team enough

Thomas

03-06-2024

Karim was extremely helpful and knowledgeable!

Karim was extremely helpful and knowledgeable.
Gave me sound advice on what I needed to do.

Steve

19-01-2024

Very helpful and informative

Very helpful and informative. Takes the time to address the details

Gotch

19-07-2024

Very helpful and friendly platform...

Very helpful and friendly impartial advice. Extremely thankful for the patience and time.

Louis

31-01-2024

Karim had exceptional dedication

Karim had exceptional dedication, a positive attitude and provided very helpful guidance. He constantly went above and beyond in every aspect.

Andre

08-12-2023

Great advice from the start

Great advice from the start, completely understanding & happy to discuss anything that your unsure about concerning

Robert

16-01-2024

Fantastic service given and a lot of help

Fantastic Service given and alot of help regarding ex business partner/supplier giving harassment and defamation. A cease and desist letter was recommended to resolve the issues. Definitely recommended.

Nick

17-06-2024

Exceptional platform and service throughout!

Exceptional service throughout the whole process. The information and advice provided was first class and exceeded my expectations.

Gavin

17-06-2024

I am delighted to share my heartfelt gratitude!

I am delighted to share my heartfelt gratitude and utmost appreciation for Zareen, the immigration consultant who expertly guided us through the British naturalisation process for my wife and two kids. From start to finish, Zareen’s exceptional service and unwavering confidence made an enormous difference in our journey.

Zareen’s expertise and professionalism were evident from our very first meeting. She thoroughly understood the complexities of our case and approached each challenge with a calm and positive demeanor. Her extensive knowledge of the naturalisation process and her ability to anticipate and address potential issues reassured us every step of the way.

What truly set Zareen apart was her constant communication and feedback. She kept us informed about the progress of our application, providing timely updates and constructive insights that helped us stay on track. Her positive attitude and encouraging words were a source of comfort, especially during moments of uncertainty.

Zareen’s dedication and meticulous attention to detail ensured that all our documentation was accurate and complete. Her proactive approach in preparing and submitting our application demonstrated her commitment to achieving the best possible outcome for our family.

Thanks to Zareen’s exceptional guidance, we successfully obtained British naturalisation for my wife and two kids. Her professionalism, confidence, and unwavering support made an otherwise daunting process smooth and stress-free. I wholeheartedly recommend Zareen to anyone seeking an immigration consultant who genuinely cares about her clients and delivers outstanding results.

Thank you, Zareen, for your outstanding service and for helping our family achieve this significant milestone. We are forever grateful for your expertise and support.

Aziz

09-07-2024

Professional and reliable

Karim is knowledgeable and very attentive in all details ensuring the process goes smoothly and transparent, Also very professional and reliable, throughout the process making it easier and more prompt, I definitely recommend it 🌟🌟🌟🌟🌟🌟

Rosana

17-05-2024

Excellent to have warm personable help!

Excellent to have warm personable assistance

Clare

16-10-2024

Thank you for the help!

Would highly recommend for drafting any contractual documents. Stand out firm

Ash

08-12-2023

Exceptional!!

Called in for information regarding my dissertation on civil law and was kindly provided with very useful information.

Ella

05-05-2024

Thank you Go Legal Ai!

Since I was in need of a lawyer, Karim was my go to. He was really listening to me and I felt heard. Thanks for your help

S D

02-03-2024

Great Platform!

karim gave me a call back and gave me advice on what I should do. Thank you

A Khan

12-03-2024

Very helpful!

Very helpful! Thanks Karim

MJ

26-06-2024

Free Consultation!

He listened and provided very good advise

Sola

04-07-2024

Recovered money for dispute

Great platform. Thank you Go Legal Ai

Maria

08-08-2024

Very caring and professional company

Very caring and professional company…

LJohn

12-05-2024

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