Direct contract with employer

[tejp]

Hi,

I am going into contracting the first time but needed some advice and answers to a few questions below which would be a great help.

1. In regards to going direct is there anything legally i need to be aware of?
2. What is the best way to submit timesheets? Is there any services out there?
3. Do i need to create my own contract or just go with the employers?

Any advice would be great.

Cheers

[mudskipper]

Hi,

I am going into contracting the first time but needed some advice and answers to a few questions below which would be a great help.

1. In regards to going direct is there anything legally i need to be aware of?
2. What is the best way to submit timesheets? Is there any services out there?
3. Do i need to create my own contract or just go with the employers?

Any advice would be great.

Cheers

If you're working direct, who are you submitting timesheets to? The client may require you to submit timesheets in order to get paid, in which case you will go with what they require

Ideally, you'd provide your own IR35 friendly contract, but make sure you know what you're doing. A sample B2B contract is available on the PCG website if you're a member.

If the client provides the contract, then you need to go through the normal due diligence to check for nasty clauses, IR35 friendliness etc. Calling them your employer is a no-no!

[tejp]

If you're working direct, who are you submitting timesheets to? The client may require you to submit timesheets in order to get paid, in which case you will go with what they require

Ideally, you'd provide your own IR35 friendly contract, but make sure you know what you're doing. A sample B2B contract is available on the PCG website if you're a member.

If the client provides the contract, then you need to go through the normal due diligence to check for nasty clauses, IR35 friendliness etc. Calling them your employer is a no-no!

Yeah i am waiting for the contract which i should get on Monday. A friend of mine also works there but he went through an agency.

So will do some reading and check for any clauses etc.

[Contreras]

1. In regards to going direct is there anything legally i need to be aware of?
2. What is the best way to submit timesheets? Is there any services out there?
3. Do i need to create my own contract or just go with the employers?

1. Payment terms. Be prepared to be chasing invoices.

2. Paper timesheets are best IMHO. Google for templates and/or befriend the agency contractors to copy their template, you have until the first Friday. If the client has their own paper timesheet then may be easier to settle for that, it won't have the legal guff that contractor timesheets have but it is still an indication of acceptance that you did work. Yes, get these signed off as it makes resolving invoice problems easier. There was a thread on this recently.

3. There is a good chance that theirs will be an employment contract botched by their 'legal team' for use with contractors. Get it reviewed, especially if this is your first contract. If you can negotiate your own terms then QDOS and PCG have template contracts available for download which would be preferable to anything written by the client.

[Wanderer]

1. In regards to going direct is there anything legally i need to be aware of?

Make absolutely sure that the contract is between your LTD company and the client - NOT you personally (though it's ok for the contract to name you as the primary consultant). Also make sure that you are not being tricked into becoming personally responsible for the company's liabilities.

2. What is the best way to submit timesheets? Is there any services out there?

Any way is OK so long as you can get them signed off reliably. Make sure there is a clear list of who can authorise your timesheets because not getting them signed off is a big bugbear.

3. Do i need to create my own contract or just go with the employers?

As mudskipper says, join the PCG and use their standard one. It's pretty professional and shouldn't give the client any real reason to worry.

If you get in first then they are more likely to take your contract which will be with favourable terms IR35 wise and it sets the right tone for the engagement.


Don't be surprised if the client turns around and tells you that you will be working via an agency though....

[TheFaQQer]

2. Paper timesheets are best IMHO. Google for templates and/or befriend the agency contractors to copy their template, you have until the first Friday. If the client has their own paper timesheet then may be easier to settle for that, it won't have the legal guff that contractor timesheets have but it is still an indication of acceptance that you did work. Yes, get these signed off as it makes resolving invoice problems easier. There was a thread on this recently.

If you are generating your own, include a term which says something like "I'm happy with the work, you can invoice me" which will help in the event of any argument.

[Contreras]

If you are generating your own, include a term which says something like "I'm happy with the work, you can invoice me" which will help in the event of any argument.

Ideally, yes. I think there is a limit to the legal jargon you can include before the person approving it starts to feel uncomfortable, whereas up to that point getting sign-off is often flattering their ego. YMMV. I have tried to make my timesheets as non-threatening as possible, no logo etc. simply titled "Timesheet" and the sign-off says:

Consultant: I certify that the time recorded above is an accurate record of services provided under contract between <MyCo> and <ClientCo> [or <AgencyCo>].
Signed: ........................ Date:..............

Client Manager: I certify that the time recorded above is an accurate record of the services provided to <ClientCo>.
Signed: ........................ Date:..............

While we're at it, I now include this in the small-print on all invoices:

Overdue payment is subject to statutory interest and charges in accordance with the Late Payment of Commercial Debts (Interest) Act 1998 as amended and supplemented by the Late Payment of Commercial Debts Regulations 2002 and the Late Payment of Commercial Debts Regulations 2013. The statutory interest or charges levied may include retrospective claims against previous overdue payments whether or not the principle debt has since been settled.

It's not a prerequisite to being able to claim interest (statutory means just that) but I believe it's worth stating an intent nonetheless.