Time to Pay an Invoice?

[Malteaser]

Hi All,

I've been lucky enough to get a new contract however there are one or 2 alarm bells going off.

I don't normally opt out, and in this case I am being told I have to opt out?

Also the distance from submitting an invoice to them paying is another month, so a months working put invoice in and then another month till payment. I've not encountered this before, is this the normal? Previously I have put the invoice in on a Thurs/Fri and I've been paid the following Friday.

I'm just not feeling very happy about this but it's only a "gut" feeling?

[Mr.Whippy]

Also the distance from submitting an invoice to them paying is another month, so a months working put invoice in and then another month till payment. I've not encountered this before, is this the normal?

Last time I worked on a contract with these payment terms was for a very large investment bank through a large, well known agency, so I wasn't particularly worried about not getting paid. If it was for a small client and agency I'd have asked for shorter payment terms.

[malvolio]

and in this case I am being told I have to opt out?

Tell them to get some proper advice. That's illegal.

[Malteaser]

Tell them to get some proper advice. That's illegal.

Thank you.

The client is a large co, however I've not heard of the agency before, however their website makes them look multi-national etc.

[Mr.Whippy]

The client is a large co, however I've not heard of the agency before, however their website makes them look multi-national etc.

You may have already done so, but search these forums to see if anyone has posted anything about them.... if not, perhaps start a new thread asking if anyone is currently working through them?

[rd409]

Hi All,

I've been lucky enough to get a new contract however there are one or 2 alarm bells going off.

I don't normally opt out, and in this case I am being told I have to opt out?

Also the distance from submitting an invoice to them paying is another month, so a months working put invoice in and then another month till payment. I've not encountered this before, is this the normal? Previously I have put the invoice in on a Thurs/Fri and I've been paid the following Friday.

I'm just not feeling very happy about this but it's only a "gut" feeling?

First of all congratulations on getting the new contract.

Most often, the agencies do not alter the payment terms. What you can do it ask them of weekly invoicing. So even if you have to wait for the payment after submitting the invoice, you wont have to wait to submit the invoice. This can hopefully bring down the waiting period to only 4 weeks, and not 2 months. This is what I do for my contracts. Either pay asap after submitting monthly invoice, or allow weekly invoicing.

[Scrag Meister]

Thank you.

The client is a large co, however I've not heard of the agency before, however their website makes them look multi-national etc.

Yeah, I expect its probably India and a bedroom in Bethanl Green.

[Malteaser]

Yeah, I expect its probably India and a bedroom in Bethanl Green.

Hmmm...

On the subject of opting in/out please forgive this quick question, I will research it properly but when I sent them I am opting in I received this in return

If you do not Opt Out:
It may imply to Her Majesty’s Revenue and Customs (HMRC) that you status is not IR35 compliant, and have additional queries and/or questions.

Is this really the case?? I was opting in is I have already met the client and from what I understood it also gave some back up if the client doesn't pay timesheets, well as far as possible.

Off to research it again..

[SueEllen]

Hmmm...

On the subject of opting in/out please forgive this quick question, I will research it properly but when I sent them I am opting in I received this in return

If you do not Opt Out:
It may imply to Her Majesty’s Revenue and Customs (HMRC) that you status is not IR35 compliant, and have additional queries and/or questions.

Is this really the case?? I was opting in is I have already met the client and from what I understood it also gave some back up if the client doesn't pay timesheets, well as far as possible.

Off to research it again..

No research needed.

Opt-in/opt-out has got nothing to do with your IR35 status.

Agents like to confuse the issue because they prefer you to opt-out as this means they can more easily avoid paying you if there is a dispute and can stick longer handcuff clauses in the contract.

However you cannot opt out after the client has been introduced to you. Agents beg to differ but the solicitors I've had look at my contracts agree with me and the PCG.

The only agency that I agreed to opt-out with properly before the client met me actually paid me swiftly. I also subsequently found the client had very strict rules about re-engaging contractors through different agencies so the agent's handcuff clauses where a waste of space.

[Malteaser]

Thank you so much, that's what I thought but when you talk to them and email them they sound so convincing, or should that read propaganda like.