Contract Payment in arrears

[kp695]

Hi,

New to contracting and starting my first contract within IR35 on 28th Feb using Paystream as an umbrella company.

I have been told that the agency will clear funds to pay stream on weekly basis but with 4 weeks in arrears. i.e. for w/c 28 Feb - 4 march, agency will clear funds to pay stream after 4 weeks i.e. in 1st April. pay stream is confident that they will be able to clear funds to my acct the same day they get the money from the agency.

I was expecting max payment within 1 or 2 weeks in arrears. is this 4 weeks arrears payment normal?

thanks in advance
kp

[eek]

Hi,

New to contracting and starting my first contract within IR35 on 28th Feb using Paystream as an umbrella company.

I have been told that the agency will clear funds to pay stream on weekly basis but with 4 weeks in arrears. i.e. for w/c 28 Feb - 4 march, agency will clear funds to pay stream after 4 weeks i.e. in 1st April. pay stream is confident that they will be able to clear funds to my acct the same day they get the money from the agency.

I was expecting max payment within 1 or 2 weeks in arrears. is this 4 weeks arrears payment normal?

thanks in advance
kp

Depending on the agency - 4 weeks in arrears is common place. And by thankful it's weekly payment because it's often monthly timesheets and monthly terms (so 8 weeks to your first payment not 5).

[northernladuk]

Agents often factor payments to some extent as they could be on anything up to 90 days from the client so depends on how much risk they are willing to shoulder and what the payment terms with clients are. That means you'll see the whole shooting match. Some pay weekly, some monthly, some in arears etc. There is no 'normal' in contracting.

P.S. Do a bit more reading around the forum and make sure you post in the correct section. 2 seconds looking at the threads in General should tell you this is not the place to post serious questions.

[SueEllen]

Hi,

blah blah...

thanks in advance
kp

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