how long to get paid?

[rd409]

Errr....Umbrellas don't pay until they are paid in my experience. Agencies however, should be.

When I started contracting, this was the option give to me.

1) Ltd Company. Agency pays the invoices after 21 days of raising the invoice. So technically, I would receive the money after a month of the work. I dont care if the Agency is paid or not, I will receive the cash for all the approved worksheet. The agency was quite reputed so didn't have issue.
2) Umbrella. Umbrella pays the salary on friday of the same week, that the worksheet was approved. I dont care if the Agency gets paid, or the Umbrella gets their money from the Agency. For this reason, I would have to pay £28 pw.

After consideration of the amount of taxes and other benefits, that I was losing out, I went for ltd company. This is my view (may be very limited, as I am relatively new to this field) of the system.

[inferno]

Thanks for all your advice. The agency is on a retainer from clientco with a 30 Day payment period...Agency releases cash, agent gets cash, then umbrella, then me. I'm not comfortable with it tbh.

[rd409]

Thanks for all your advice. The agency is on a retainer from clientco with a 30 Day payment period...Agency releases cash, agent gets cash, then umbrella, then me. I'm not comfortable with it tbh.

What is the umbrella company? If you are free to choose your umbrella, I am sure there are many on this board, who would like your custom, and will definitely offer you a fair deal.

[inferno]

What is the umbrella company? If you are free to choose your umbrella, I am sure there are many on this board, who would like your custom, and will definitely offer you a fair deal.

Yes I am. Just checked my contract and it states 'paid two months in arrears or sooner' ?!

If anyone has recommendations please get in touch!

[badger7579]

When I started contracting, this was the option give to me.

1) Ltd Company. Agency pays the invoices after 21 days of raising the invoice. So technically, I would receive the money after a month of the work. I dont care if the Agency is paid or not, I will receive the cash for all the approved worksheet. The agency was quite reputed so didn't have issue.
2) Umbrella. Umbrella pays the salary on friday of the same week, that the worksheet was approved. I dont care if the Agency gets paid, or the Umbrella gets their money from the Agency. For this reason, I would have to pay £28 pw.

After consideration of the amount of taxes and other benefits, that I was losing out, I went for ltd company. This is my view (may be very limited, as I am relatively new to this field) of the system.

I think the Umbrella would care if the agency has not sent them the money seeing as they are acting as the body responsible for working out your tax liabilities, calculating your payment and then making that payment to you...

[SueEllen]

Yes I am. Just checked my contract and it states 'paid two months in arrears or sooner' ?!

If anyone has recommendations please get in touch!

The agency saw you coming. You should have negotiated before you signed the contract.

[Wanderer]

Yes I am. Just checked my contract and it states 'paid two months in arrears or sooner' ?!

That's nasty. Don't let them shaft you like that again, absolute max is 30 days.

[The Agents View]

The agency is on a retainer from clientco with a 30 Day payment period...

No reason for them not to pay weekly here.......

Agency releases cash, agent gets cash, then umbrella, then me. I'm not comfortable with it tbh.

This is VERY VERY dubious. Firstly, the money should be coming from the agency, to your umbrella. The AGENT (as an entity) should have NOTHING to do with it.

Your terms SHOULD be within 14 days of timesheet submitted.

If your agency is not paying up, your umbrella should be (or claiming on their insurance).

overall. Run away!

[rd409]

I think the Umbrella would care if the agency has not sent them the money seeing as they are acting as the body responsible for working out your tax liabilities, calculating your payment and then making that payment to you...

They have an insurance for situations like that, and guess what? The premium goes from the fees that you pay. This is very similar to the insurance you can take for your limited company, in case the agency or client goes bust and cannot pay your invoices. Umbrella is not just accountants sitting and calculating and making payments. They are a lot more than that as per my knowledge.

[inferno]

So basically umbrellas should pay regardless of wether they have the funds from the client, agent or whatever?

Am a bit peeved. Shall I just go ltd?