Reply to: invoicing client direct

[VillageContractor]

Been invoicing directly for for 15 months, all paid. Some slightly late and some bad book keeping from their end. But it's mainly their incompetence rather than a desire not to pay so I've been quite happy.

I guess it all depends like others have said.

[TheCyclingProgrammer]

Been invoicing direct with clients since started (only one small agency job in 8 years) and at worst have had a few invoices a few late and a few I've had to chase up a bit more, but 90% of my invoices get paid on time or early.

Most clients tend to either be the sort who pay on receipt of the invoice or those who wait to the exact due date (bigger companies usually). I've had one that insisted on paying my invoices as part of their monthly pay run, which meant technically some of them were late (I was billing fortnightly) but I couldn't be bothered arguing, they still paid each month.

[SueEllen]

WTS. I did a small 4-week gig and still had to get a solicitors letter to get them to pay up. I also did a direct gig where the client went bust leaving me a month's money out of pocket. But recently I spent over a year working direct and never had any issues; in fact to start with even though they had 30 days they used to pay within 3 or 4 days until presumably somebody spotted it.

It can depend who you in the organisation you deal with. I think in the latter case it was the lady that operated the employee's payroll also paid the contractors, and that's why it was done promptly. If you're dealing with a purchasing department whose job it is to try to avoid paying for things, then it may get more tricky.

Mimics my experience some what.

[VectraMan]

WTS. I did a small 4-week gig and still had to get a solicitors letter to get them to pay up. I also did a direct gig where the client went bust leaving me a month's money out of pocket. But recently I spent over a year working direct and never had any issues; in fact to start with even though they had 30 days they used to pay within 3 or 4 days until presumably somebody spotted it.

It can depend who you in the organisation you deal with. I think in the latter case it was the lady that operated the employee's payroll also paid the contractors, and that's why it was done promptly. If you're dealing with a purchasing department whose job it is to try to avoid paying for things, then it may get more tricky.

[TheFaQQer]

Invoicing directing will be a total ball ache, unless you are happy to chase payments when the clientco is deliberately hold back from paying.
Don't do it.

Guess it depends on the client - I've been invoicing direct for the past few years with only a couple of hiccoughs.

First invoice was late by a few days because they struggled to get everything approved for the first one (needed extra approval). One was late because it disappeared in the scanning system (didn't go through for some reason) - when I chased it they did an extra payment run for me. One was rejected because they gave me the wrong PO number to put on it - corrected within the deadline to pay though.

If it means that there is one less company to disappear with the money then I'm in favour of it.

[WTFH]

Invoicing directing will be a total ball ache, unless you are happy to chase payments when the clientco is deliberately hold back from paying.
Don't do it.

I've invoiced direct before, never had a problem. Once the IT manager had forgotten to approve my invoice in time, so when I didn't get it paid on time I asked him, he apologised and the AP department put the payment through on an emergency run.
One other time I had calculated the VAT incorrectly on an invoice, so they rejected it and emailed me to my personal email address. I replied from my ClientCo email with a corrected invoice, payment made immediately.

It helps if you get on well with the company, in particular the person who approves your invoices and the AP team.

[kaiser78]

Invoicing directing will be a total ball ache, unless you are happy to chase payments when the clientco is deliberately hold back from paying.
Don't do it.

[NotAllThere]

I've worked direct for a number of clients where there was no contract, no purchase order and no timesheets to fill in. I just invoiced and got paid 30 days later, as per my standard terms and conditions. I prefer to have at least a purchase order though.

[bikeman]

I decided to take the work via an umbrella company. I don't think the client has much experience of using contractors because they haven't supplied a contract, just a note re working place, hours and payment terms. They also don't have a timesheet system. I've yet to speak to the umbrella co about this but wonder how they will proceed.

[NotAllThere]

Sorry what I meant was as a single employee ltd company, though I guess on reflection it doesn't matter if it is one employee or hundreds, the ltd co still has to pay employers ni - I think I've got it

With a ltd co, you can take money out via wages - PAYE, ERNIC, EENIC. Or by dividends - still taxed, but no NI deductions. Furthermore, with a ltd. co, you can not pay it all out, but hold over to subsequent years, allowing you to cover lean periods. Kind of contracting 101.

[bikeman]

You've lost me. "Through a Ltd co as a sole trader" - this makes no sense.

Sorry what I meant was as a single employee ltd company, though I guess on reflection it doesn't matter if it is one employee or hundreds, the ltd co still has to pay employers ni - I think I've got it

[TheCyclingProgrammer]

So you also get tapped for the employer ni even if you work through a ltd co as a sole trader? I thought not having to pay employer ni was one of the advantages of going ltd co.

You've lost me. "Through a Ltd co as a sole trader" - this makes no sense.

[bikeman]

From a client/agent POV it makes no difference if you use your own Ltd or an umbrella.

So you also get tapped for the employer ni even if you work through a ltd co as a sole trader? I thought not having to pay employer ni was one of the advantages of going ltd co.

[TheCyclingProgrammer]

One more thought, why don't agencies/clients insist on paying all their contractors via umbrellas rather than ltd co's if it saves them employers ni?

From a client/agent POV it makes no difference if you use your own Ltd or an umbrella.

[bikeman]

One more thought, why don't agencies/clients insist on paying all their contractors via umbrellas rather than ltd co's if it saves them employers ni?