As it says I'm new to contracting, I'm working through a Limited company and I've been working for 3 weeks and there is still no sign of a contract - I did mention it but the client thought it unnecessary - they seem happy, they do pay me on time and the cheques don't bounce. But I have this nagging suspicion though - why do I really need the signed bit of paper ( this is working direct, not through an agency) - will it make a difference to the Inland Revenue?
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Direct
I worked directly without a contract a number of times. As long as you have most things like rates, overtime, travel, etc via a written email from the client then you have covered the most important things. The revenue are unlikely to approach you if you are direct with a client. If they do then it will be a case of explaining your working relationship which will prove a more difficult case to prove than using the usual approach of contacting the agency and getting a copy of your current contract.
In one situation I had a direct contract (FTSE100 company) and I was hanging around for a month for a software release, the client promised to pay me to wait but in the end didn't have the cash. I either take them to court (that was discussed) or I forget about it and finish the job off. I finished the job off and recouped my losses with a bit of creative invoicing. -
contract
"I'm working through a Limited company and I've been working for 3 weeks and there is still no sign of a contract"
That's because it's your job to write it (doh). Do try not to let the buyer write the service level contract if you can avoid it.
No, you don't categorically need a contract but I tend to insist on one if I'm going to be engaged for more than a fortnight, in order to make the liabilities clear. If there's mutual trust, all you really need is a written letter specifying the rate.
Oh, and by the way, you are working FOR a limited company, not through it. (tl in 'proper consulting firm' mode).Comment
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Re: contract
Get a set of decent terms and conditions drawn up, attach those to your invoice and client lethargy will do the rest normally - I have had 100% success rate in this direction this year. This combined with a response to an e-mail confirming rates scope of works etc should be enough. If you agree anything verbally to do with money follow it up with a confirmation e-mail! I just send a mail 'to confirm what we discussed today' OK its not perfect but if you have delivery confirmation and no challenge then its fairly damning.
Or use the PCG (www.pcg.org) direct contract - available to members only (£100 to vat this includes various member benefits) but the client has to sign this so they start bringing in their HR/Lawyers and it gets messy took me 3 months to sort it out with my last agent.Comment
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Re: contract
Even better if they won't agree to use a direct contract, simply get new invoices printed, with your T&C's stated on the back of the office.
Then if they continue paying your bills, they will have implicitly agreed to your terms anyway :evilComment
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Re: contract
Is there an echo in here?
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Revenue Status Officer
Thanks for all the comments, I'll get the terms & conditions drawn up to add to the invoices.
I've also been working for the company who made me redundant 2 months ago - just the odd day here & there -(again no contract). The Revenue said I should speak to a 'status officer' - sounds ominous - so before I do I want to know what that is, why and (as its probably going to cost) how to pay the least.Comment
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Re: Revenue Status Officer
Very important you get some professional advice before you speak to the IR. Read up on IR35 in the accountancy section of this site. Talk to an accountant (most of the ones who post on here are good).Comment
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re
I worked without a contract in place for five months - however I was sitting next to the girl who processed invoices so if mine wasn't in the batch by a certain date for a certain run, then she got thumped.
Obviously, not everyone will be in that priviliged position of being on top of the structure but there we go.Comment
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Re: re
You don't need a contract for when you get paid, you need it for when you DON'T.Comment
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