30 day payment terms - weekends, bank holidays and excuses

[contractnewbie]

30 day payment terms - weekends, bank holidays and excuses

Thanks all for the feedback.

I am employed through an Umbrella (I'm not limited). The Umbrella pay me when they get paid. My contract with the agency is 30 day terms/also the agency has agreed 30 day terms directly with the Umbrella as its them they actually transfer the money to.

Yes I am trying to build up that 3 month nest eggs but for various reasons (which I wont go into here) I don't have that nest egg right now :-)

northernladuk There a few companies on the PSL here, I was thinking that due to the fact that a) I have opted into the AWR b) My agency are breaching the contract (with late payment) every month, I may have some legal options to move to another preferred supplier/agency (who I know through colleagues pay on time). What do you think?

Thanks all :-)

[Safe Collections]

Thirty day terms means the money should be in your bank account within 30 calendar days.

The agency sending a bacs on day 30 would mean they are legally paying late and you could, if you so desired, add late payment costs and interest to any invoice paid outside of agreed terms.

If prompt payment is important then you need to raise it with the agency, it could well be that they have gotten away with sloppy payment practices so far so they may not think a small delay is an issue.

[northernladuk]

You do know it's highly unlikely you won't be able to switch due to the handcuff clauses they have and possible due to the current one being on the PSL?

I worked for an outfit that were late over weekends and BH's as well and contractors complained so they added 5 days on to the payment schedule in all future contracts To be fair they never failed to meet their obligation on the new schedule. Those extra few days obviously were difficult for them for one reason or another.

Have you not got enough in the bank to cover your outgoings in case payment is a little late? What about your float for your tax and VAT liabilities?

[tractor]

...

It is acceptable for payments to be late after a BH. Some companies are good and pay early, some don't give a tulip and pay afterwards.

They can insinuate what they want but you have a right to chase if they are late. Grow a thicker skin and don't worry about it but don't be on their case if they are 5 nanoseconds late. BACS should not take longer than a day. If their payments do, they are not using BACS (AIUI).

You are right to be practising effective credit control. Add the evidence to your anti-IR35 file.

[contractnewbie]

Hi All

I am new contracting so hope you can help. I have 30 day payment terms with my agency, they have paid me 4-7 days late the last few months. When I call them to chase (as I have bills going out etc), they insinuate that I am in the wrong for chasing them. Would like your thoughts, should I just expect payment a week or two later than due date (due date being 30 days after I submit the inviuce) or am I within my rights to depend on and expect the payment on or before (but not after) the due date?

Excuses from the agency have been 1) due date was on a weekend so we pay you after the weekend. 2) It takes 3-5 days for payment to hit your account by BACS. Am I missing something here or should they be processing payment earlier to account for weekends, BACS transfer time, so that it actually HITS my bank on or by the due date?

I am thinking of switching agencies so wanted thought on if I am overacting here, its stressing me out every month. (I am trying to build up some savings so that I am not so dependant but not there just yet).

Thanks for listening, would love you advice ;-)