Just been speaking with a friend who is working for a Government department via a well known consultancy. As part of the changes in response to the IR35 private sector rollout the new contracts that have been issued have a clause whereby 20% of each invoice is witheld till the end of the contract and release upon adequate performance. Has anyone else encountered this?
- 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
-
-
Nice way to demonstrate financial risk (a minor CEST determining factor from memory) while potentially substantially increasing the consultancy's profits if the clause doesn't have clear cut success factors.
merely at clientco for the entertainment -
That would set my alarm bells ringing. I'd want to know exactly what "adequate performance" meant and how it was evidenced.
That sort of thing totally drives the wrong behaviour as you'd spend more time collecting proof than delivering value to the client.Comment
-
Originally posted by ladymuck View PostThat would set my alarm bells ringing. I'd want to know exactly what "adequate performance" meant and how it was evidenced.
That sort of thing totally drives the wrong behaviour as you'd spend more time collecting proof than delivering value to the client.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by northernladuk View Post
Absolutely. If they want to withhold it I'd want to see very clear definitions of what the criteria is for it to be released. Very clear and tangible activities should be listed so they can be assessed and if need be argued. A general 20% and we'll pay you at the end is not acceptable at all.merely at clientco for the entertainmentComment
-
It does seem very vague on what adequate performance is, additionally it's only been dropped on several contractors I've previously worked with 2 weeks till their current contracts expire. Maybe it's a coincidence however it does seem the timing may benefit the consultancy in some capacity.In Scooter we trustComment
-
Comment
-
Originally posted by eek View Post
The problem is - in a very wishy washy T&M agreement with flexible requirements - how do you determine prior to the contract beginning what the criteria is.
EDIT : It's Public Sector isn't it and you did say well known consultancy sorry. That should give you a bit more confidence.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by The Spartan View PostJust been speaking with a friend who is working for a Government department via a well known consultancy. As part of the changes in response to the IR35 private sector rollout the new contracts that have been issued have a clause whereby 20% of each invoice is witheld till the end of the contract and release upon adequate performance. Has anyone else encountered this?Comment
-
Originally posted by JohnM View Post
I have never come across this and would turn a gig down if it had this clause in it I have not done any public sector work for years anyway that is probably why I have not seen itmerely at clientco for the entertainmentComment
- 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
Comment