It was a human error, you noticed at the time and said nothing. Now they are looking their money and you are looking for legal ways not to pay.
Legally they can probably do nothing but you know you owe them £1k. What you do is morally up to you and I bet if it was you who was owed £1000 due to your error, you would fight to get it.
You seem to be wanting random internet strangers to validate and approve your morally corrupt actions.
This really.
I'd say you're going to have to (rightly) pay this. If there's a signed contract and proof I can't see how you can get away with it. Especially months.
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