Time to Pay an Invoice?

[Wanderer]

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

Listen to your gut because it's talking good sense.

As others have said, it's illegal for them to require that you opt-out. That won't stop them trying their hardest though. Let me guess, the demand that you absolutely must opt out was never made in writing was it? Hmmm, wonder why? If it was made in writing then see if the agent is a member of REC and forward the evidence to them as a complaint.

LOL, thank you I have a feeling this week / contract is going to be a head ache. Ah well I'll never know until the first payment is due as they are very unhappy about the opt in. Ho hum

30 day payment terms suck. Try to negotiate it down, but be prepared for all sorts of screaming and wailing (but it's our standard terms !), it generally gets referred to the "finance director" for personal approval (yeah whatever). If you can't get better terms then make sure you can invoice weekly. Point out to them that you are not willing to extend them 60 days credit, end of story. They aren't going to drop you in a dispute over payment terms, whatever the terms are they are still making a lot of money.

[TykeMerc]

As the others have said the flannel the agent has given you about Opt In/Out and IR35 is just that, flannel, bull excrement, ill informed rubbish or well informed lies. Mal pointed out it's illegal for them to insist you opt out and by my understanding he's absolutely correct, you're opted in by default unless you elect to opt out (in writing) and that has to be prior to being introduced to the client.

On the subject of invoicing and payment terms it's not unusual for agents to offer monthly and 30 days, in fact they will frequently insist that it's their corporate policy. When faced with this I insist that my companies corporate policy is weekly invoicing and 14 days, it can make for some interesting negotiations, referrals to the agency "directors" and agent bitching, but generally speaking some compromise is possible.
No matter the size of the agency I do not extend 30 day credit let alone 60+, I was burned by bad payers in the past and personally I won't take that risk again.

[Mr.Whippy]

when you talk to them and email them they sound so convincing

Agents tend to sound convincing, when the reality is they're generally talking utter tulipe. Especially on the whole "you have to opt out or you will be inside IR35" thing.... 's

LOL, thank you I have a feeling this week / contract is going to be a head ache. Ah well I'll never know until the first payment is due as they are very unhappy about the opt in. Ho hum

Personally, I usually just opt out in the situation of having already been introduced if the agent is being a tool..... and then I'd try argue the validity of the "opt out" later if it ever came to it....

[Malteaser]

This may help you remain focussed, young Padawan.

LOL, thank you I have a feeling this week / contract is going to be a head ache. Ah well I'll never know until the first payment is due as they are very unhappy about the opt in. Ho hum

[RichardCranium]

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.

This may help you remain focussed, young Padawan.

[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.

[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]

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..

[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.

[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.

[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?

[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.

[malvolio]

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

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

[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.

[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?