Originally posted by perplexed
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Consultancy witholding 20% of each invoice in new contracts
Collapse
X
-
-
I recently accepted extension with similar conditions. Consultancy & Govt Client. Retained 20% will be paid based on deliverables. I was perfectly comfortable accepting it, rather than being 'inside' or 'jobless'Leave a comment:
-
I'm happy to be proven wrong, but not sure it's something that would help one iota.
Smacks to me more of incentivisation to prevent contractors leaving contracts than anything else.Leave a comment:
-
Originally posted by eek View Post
See the CEST criteria for a contract being outside IR35 - one of the criteria is financial risk.Leave a comment:
-
I have spent the last 4 years bouncing around public sector (NHS Trusts and Council) and never come across this.
I did have something similar in my second contract which was for a large rail/transport company.
It wasnt based on performance but rather 10% was kept provided I stayed till the contract end and didnt leave early.
As someone who was starting out in the contracting world I was happy to get that second contract so quickly that I took it.
Stayed till the end of the project and got the 10% 'bonus' at the end.
Looking back now, with more experience and knowledge under my belt, I wouldnt go for it again.
Leave a comment:
-
If it is an attempt to make contractors act more like external suppliers with a view to helping towards IR35 then well worth exploring. However being a tester I have been involved in too many projects that are already late before you have the chance to start test execution (and have seen developers either twiddling their thumbs waiting for requirements to be signed off or having to make changes after someone changes their mind).Leave a comment:
-
OK, so budget taking the 80% and would you still accept the contract? If you're after 600 per day, quote 750 as your day rate. Moving goalposts still gets you your original figure and you can set precedents arguing the toss.Leave a comment:
-
Might take contractors closer to being consultancies that are always subject to penalty clauses etc. If it's enough to move the IR35 dial, I'd be fine with it.
But, it would have to be deliverable based and not some arbitrary clock watching scheme.
Might work.Leave a comment:
-
I've seen this before as a completion fee. If you don't finish the project within the given criteria you won't get it etc.
Has been quite rare though I suspect may become more common as agencies search for silver bullets.
Personally educating clients and contractors around substitution, MOO and PandP should yield a more consistent result.Leave a comment:
-
Originally posted by eek View Post
See the CEST criteria for a contract being outside IR35 - one of the criteria is financial risk.
As to what this is, it's reminiscent of snagging in the construction industry. Burden of proof would be with the consultancy to evidence that work was not to standard, rather than contractor has to prove it was, unless the contract wording stated otherwise. One for a legal professional probably.
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: