Well, I am going to get paid but it's a good job that I did chase early as they hadn't set up the contract on their systems yet and I wouldn't have been paid. I'll be paid one day late but at least I know that it is going through the BACS system.
I see absolutely no problem asking for clarification that I am going to get paid for the first invoice in a new contract with a new agency. Based on years of experience with agencies, it would be startlingly naive for me to assume that an agency is going to get everything right first time and I will be paid on time. I'm not questioning their ethics or intention to pay, just acknowledging that sometimes things go wrong and getting them dealt with early.
- 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!
Reply to: First invoice payment
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "First invoice payment"
Collapse
-
Think I'd let a day or two pass on the odd occasion but be very wary if any agency or company makes a habit of late payments, it can be a sign of financial problems. Happened to me where I had to chase a client for payment on a couple of occasions and a few months later I lost over £1000 when they went bust.
Leave a comment:
-
Originally posted by Acme Thunderer View PostTurns out they were missing some contract paperwork from the client and there internal rules said I couldn't be paid until they had it.
One small factor that makes me think the people who came up with IR35 may have had a point is contractors' exposure to risk of non payment. I.e. there is none, at least not really, and not significantly different to that of an employee. Whereas a real business deals with late payers and cash flow problems all the time. It's part of what running a business is.
Leave a comment:
-
Well I think a little reminder doesn't do any harm. I work direct with my client and for the fist 6 months or so they would pay within 2 weeks, even though we have 30 days agreed. Over the last year though they have often been late. Not a problem with their liquidity - just their organisation as they now have lots more contractors. Once they paid one of my invoices twice - which sounds nice but took quite a bit of effort to sort out.
Now I chase my invoice one week before it is due to remind them when it is due and I rarely have an issue.
Leave a comment:
-
Originally posted by JamJarST View Post
A payment term is most definitely a target, any AP controller worth their salt will be looking to pay at the best terms for their business.
There as small businesses know if they screw people over they are likely to get burnt themselves.
Leave a comment:
-
Originally posted by Spacecadet View Postif I'm on 30 days terms and it's the first invoice then I usually send a polite reminder a few working days before payment is due.
30 days should be a limit not a target
A payment term is most definitely a target, any AP controller worth their salt will be looking to pay at the best terms for their business.
Leave a comment:
-
Originally posted by Wobblyheed View PostI think I'd wait and see if the payment is made before coming on here and having a rant about something that hasn't happened yet
It's when they are late with 2 payments you need to find out what is the problem.
With agencies they shouldn't be late with payments except if there is an issue with how their and your banks process BACS. However it this happens they will always be late by one or two days not weeks.
Leave a comment:
-
Firm but polite
Had it happen to me. Due to be paid weekly on a Friday and wasn't.
Phoned the agency accounts department on the Friday afternoon saying I hadn't been paid when due to and asking was there a problem. Turns out they were missing some contract paperwork from the client and there internal rules said I couldn't be paid until they had it.
I phoned my agent and told him the story and reminded him that the contract was between My Ltd and the Agency. If they were short of something from client then that should not affect them paying me.
Was added to that days payment-run and received money couple of days later.
Leave a comment:
-
Originally posted by JamJarST View PostYou start chasing for money before it is due
30 days should be a limit not a target
Leave a comment:
-
Originally posted by Wobblyheed View PostI think I'd wait and see if the payment is made before coming on here and having a rant about something that hasn't happened yet
Leave a comment:
-
Originally posted by Wobblyheed View PostI think I'd wait and see if the payment is made before coming on here and having a rant about something that hasn't happened yet
Leave a comment:
-
Originally posted by craig1 View PostI'm due payment on my first invoice at my new contract on Monday so, following my usual process for a new agency, I contacted them today to see if the BACS payment had been made as today's the deadline for BACS to ensure I receive it on time.
I have absolutely no tolerance for late payment and if I don't get payment before COB Monday then I'll be starting my "late payment" process. I have some sympathy for the smaller agencies due to not many people covering the AP role but the larger agencies have no excuse.
That had me thinking, what if the agency didn't pay on time for this first invoice? It would be interesting to see what people would do and how long they'd go before withholding labour for non-payment. Personally, I'd go either one week over or two invoices unpaid before I told the client that I was going to withdraw my services for non-payment.
Leave a comment:
-
Originally posted by craig1 View PostI'm due payment on my first invoice at my new contract on Monday so, following my usual process for a new agency, I contacted them today to see if the BACS payment had been made as today's the deadline for BACS to ensure I receive it on time.
I have absolutely no tolerance for late payment and if I don't get payment before COB Monday then I'll be starting my "late payment" process. I have some sympathy for the smaller agencies due to not many people covering the AP role but the larger agencies have no excuse.
That had me thinking, what if the agency didn't pay on time for this first invoice? It would be interesting to see what people would do and how long they'd go before withholding labour for non-payment. Personally, I'd go either one week over or two invoices unpaid before I told the client that I was going to withdraw my services for non-payment.
Leave a comment:
-
First invoice payment
I'm due payment on my first invoice at my new contract on Monday so, following my usual process for a new agency, I contacted them today to see if the BACS payment had been made as today's the deadline for BACS to ensure I receive it on time.
I have absolutely no tolerance for late payment and if I don't get payment before COB Monday then I'll be starting my "late payment" process. I have some sympathy for the smaller agencies due to not many people covering the AP role but the larger agencies have no excuse.
That had me thinking, what if the agency didn't pay on time for this first invoice? It would be interesting to see what people would do and how long they'd go before withholding labour for non-payment. Personally, I'd go either one week over or two invoices unpaid before I told the client that I was going to withdraw my services for non-payment.Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: