Rebates & Payment Terms

[eek]

We have so many with zero notice periods too - so no monies coming in, and yet an obligation to pay the EV company

I always thought the only way to run such a scheme would be to ensure the full lease payment was sat in a client account or equivalent before the contract was signed / started.

but that would probably seriously limit the number of people who could sign up for such a scheme..

[lucyclarityumbrella]

We have so many with zero notice periods too - so no monies coming in, and yet an obligation to pay the EV company

[eek]

I can add to it now too - got one umbrella offering salary sacrifice EV car, with commited contractual payments from the brolly to the car company sometimes of up to 3 years! Won't be long before they vanish if the contractors are on zero notice period!

I always wondered when that sort of scheme would arrive - for a contractor it makes perfect sense (as it significantly reduces the cost of buying a car) but as you say - what happens when the contractor gets a contract that requires using a different umbrella or an outside IR35 contract...

[lucyclarityumbrella]

Personally as a contractor I would be asking all umbrellas whether they offer payment terms and would be steering clear of any who do

I can add to it now too - got one umbrella offering salary sacrifice EV car, with commited contractual payments from the brolly to the car company sometimes of up to 3 years! Won't be long before they vanish if the contractors are on zero notice period!

[eek]

Probably worth adding here

rebates aren’t nice but can be planned for

payment terms are the area as an umbrella employee you need to be concerned about - because none payment of a bill has taken down agencies and umbrellas in the past. And the bill that isn’t paid may have nothing to do with you, but it won’t help if the umbrella goes bankrupt the day you invoice was paid.

personally as a contractor I would be asking all umbrellas whether they offer payment terms and would be steering clear of any who do

[lucyclarityumbrella]

Unfortunately, all too common. As we all know the margins for umbrella are low as it is and the cost of compliance is high! Rebates are becoming more and more prominent and does and will come at a cost. Not that long ago that rebates and advance payments took a large-ish umbrella under - just goes to show it doesn't take much! We do work with some amazing companies who don't and won't ask for rebates - if only this was the norm!

[Andy Hallett]

Not sure how common knowledge this is so thought I'd share:

https://www.linkedin.com/feed/update...9844582150144/