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!
I’m slightly confused based on the previous response too - negotiate with whom? The hiring company or the agency? Is there a need for an agency for an outside role? I assumed not but after the last comment I’m unsure
I've worked on projects where multiple contractors have been supplied to the client through the same agency.
Each contractor had different payment terms with the agency which were:
- Weekly billing 30 day terms
- Monthly billing 14 day terms
- Monthly billing 30 day terms
- Monthly billing 45 day terms
We all had to submit our own invoices to the agency, but the timesheets were submitted to the client on their schedule.
45 day payment terms was the max the client would allow for sub-contactors. How did I know that? Well finding things like that out are for you to find out yourself as a contractor.
"You’re just a bad memory who doesn’t know when to go away" JR
Don't forget potential problems with people not signing timesheets and then whoever is the payer paying late. Just because it is in the terms doesn't mean they always adhere to it. I took my eye off the ball on this gig and found out I was waiting for nearly four weeks of timesheets to be signed off. I shouldn't be doing that but it's a solid gig so no sweat really.
There is also the situation where the gig gets pulled before you even start or just a few weeks in and it's back to zero income.
'CUK forum personality of 2011 - Winner - Yes really!!!!
Nope payment terms will depend on the agency so can be:-
weekly billing 7 day terms
weekly billing 30 day terms
Monthly billing 7 to 15 day terms
Monthly billing 30 day terms
Monthly billing 45-60 day terms (paid when we the agency is paid)(.
As for outside and inside IR35 - the important factor for me would be - how much travelling does the contract entail because with an outside contract that comes out of the £500 a day fee while inside the costs would come from your post tax income (i.e. from the £300 or so you got after tax).
Or get the client to pay your travel expenses. My latest contract is remote based but the client pays my expenses when I travel to site.
Or get the client to pay your travel expenses. My latest contract is remote based but the client pays my expenses when I travel to site.
Is the client paying the expenses themselves? If not outside IR35 you haven't got a problem but inside inside IR35 the £100 you are getting for traveling to their main site (i.e. your commute to work) will have tax deducted before you receive the end payment.
Is the client paying the expenses themselves? If not outside IR35 you haven't got a problem but inside inside IR35 the £100 you are getting for traveling to their main site (i.e. your commute to work) will have tax deducted before you receive the end payment.
I'm outside - I've never worked inside IR35 in 9 years as a contractor.
Is the client paying the expenses themselves? If not outside IR35 you haven't got a problem but inside inside IR35 the £100 you are getting for traveling to their main site (i.e. your commute to work) will have tax deducted before you receive the end payment.
If the place of work is "remote" so it's the OP home then travelling into any of the client's offices is travelling.
Anyway the client won't want to pay the travel expenses unless absolutely necessary so having such a clause in the contract should set to zero the amount of times you have to travel in.
"You’re just a bad memory who doesn’t know when to go away" JR
And you have to remember that HMRC purposefully changed the rules back in 2016 so that for umbrella workers the rules now reflect the contract you are currently working on, not your overall time with that umbrella (that previously allowed you to claim expenses once you started the second contract)
Comment