Early Termination - Work load not sufficient - Compensation ?

[Contreras]

Won't you owe the VAT man 20% of this invoice value, paid or not?

Using normal VAT accounting rules yes that is the case, but you can claim VAT relief when the invoice is eventually written off as bad debt.

With cash accounting VAT rules you pay would VAT only only the monies received. This option makes sense from a cash flow perspective obviously and you don't need to apply to use use cash accounting methods for VAT - just do it.

Same options apply if you are on the Flat Rate Scheme.

[Wanderer]

With cash accounting VAT rules you pay would VAT only only the monies received. This option makes sense from a cash flow perspective obviously and you don't need to apply to use use cash accounting methods for VAT - just do it

Yep, good advice. Does anyone here NOT use VAT cash accounting?

Ref: HMRC guidance on VAT Cash Accounting

[psychocandy]

100% agree. Here's a clause that I saw in a contract from Silverlink Technologies:

"Fees [to MyCo Ltd] may be withheld or delayed if a client or customer of the Company [the Agency] who receives the benefit of the Services fails to pay the Company for any reason. If, having paid the Service Company the fees, a client or customer of the Company fails to pay the Company for the benefit of the Services for any reason, the Company may require the Service Company [MyCo Ltd] to repay immediately upon demand such fees as may be referable to the period in respect of which the Company has not been paid."

How would signing a contract with this in fit in with not opting out? Im guessing since you've specifically agreed to this then its your hard luck.

[psychocandy]

All well and good and correct as NLUK and others say. No work no money.

But once again, imagine contractor turning around at 5pm and saying, BTW, I know theres a notice period etc but I'm just not going to doing any work for you for the next 4 weeks. So tell you what we'll terminate it now or let it run and I just won;t show.

Can imagine the agent (and client) screaming out that they're going sue!

[GazCol]

All well and good and correct as NLUK and others say. No work no money.

But once again, imagine contractor turning around at 5pm and saying, BTW, I know theres a notice period etc but I'm just not going to doing any work for you for the next 4 weeks. So tell you what we'll terminate it now or let it run and I just won;t show.

Can imagine the agent (and client) screaming out that they're going sue!

But the contractor won't have a clause in the contract that says "If there's work and I don't want to do it, the contract can be terminated without a notice period".

Cancellation clauses will always be sided for the client co as they're the ones instigating the work.

[DirtyDog]

How would signing a contract with this in fit in with not opting out? Im guessing since you've specifically agreed to this then its your hard luck.

It's an invalid clause. So assuming that the contract has an "if there is anything in this contract which is invalid, then ignore it" clause, then it would be ignored.

[eek]

Holy pointless thread resurrection.

[northernladuk]

Holy pointless thread resurrection.

[psychocandy]

Here are the options for you guys in case you didn't know.

1. Look at thread. Decide your not interested and move on. 5 seconds elapsed.

or

2. Look at thread. Type a bit of a whinge about wasting your time or whatever. 1 minute elapsed.

Surely, option 1 is best if your not interested? Am I missing something?

[diesel]

beware seen other agencies such as Orion use the "anytime clause" citing they can cancel a contract anytime for "emergency" reasons which only they can declare and state as an emergency to stop u getting paid etc..

read your contract! and if its not fair tell agency to change it or stuff it!