Umbrellas and pay

[sillypenguin]

Hey

So yeah another newbie to contracting. Another confused one. Your probably thinking yaaawn!!

But please don't go yet, cause honestly I have been researching I just must be searching the wrong things

So I wana go down the umbrella route. The agency that offered me the job recommended me to one in particular saying they were the best one to go with (dont know if its wise to mention what one) so I called them and asked them the usual questions, they told me I could claim back my travel expenses etc, gave me a quote, sounded quite good I suppose. But then BAM! told me I'd have to wait 10 weeks til I got my first pay!

10 weeks!! can they actually leave you without money for that long??

My minimum wage job that is ending in few days isn't going to keep me going til next week never mind 10...

So the question is...are all umbrella companies like that? Is that a standard thing? I mean how do people pay for stuff??! How am I supposed to even get to work! I mean this was recommended to me so I dont know if I can go with another umbrella company because the agency might no deal with them. But when I try to look up more about this online I cant find anything about a lie in time in regards to your first wage or anything similar

Can someone point me in the right direction before I realise that agreeing to contracting might of been the biggest mistake. I really hope not though!!

Thanks

P.s. I did not sign a contract, I had no idea that it was 45 day invoice period never mind the fact that I wouldnt even be getting my first one on time! This was all brand new information even though I met with the agency some weeks ago. I feel like if this is my only option I've been played for a fool and well I've left my current job (there's no way I would want to stay there any longer tbh!) so I'll just need to work all that time to get cash since I really need it regardless. The whole thing is so stressing me out, this is why I though umbrella companies would be better than ltd

Pps. Ive also been advised I fall inside IR35 so that going ltd wouldnt really save me much more money. Plus isnt it expensive to sort out an accountant? I would love it if I could do all the paperwork myself but I'd freak about messing things up constantly i.e more stress!!!

[LisaContractorUmbrella]

When the umbrella company pays you will be determined by the terms that are specified in the contract that they sign with your agency; if the agency pay 7 days from date of invoice or 60 days from date of invoice that will be reflected in your pay structure. Saying that, umbrella companies should pay you a monthly salary which is based on minimum wage regardless of whether they have received funds from the agency

[sillypenguin]

Thanks for replying

So in theory any umbrella company I register with should pay me by the month? Why say 10 weeks, I'm quite put off by this

Would this make any difference if I set up a ltd company. Does the agency still have control over the frequency of my pay? I reeeeally can't wait til end of September to get paid. If this is the case then I guess contractings not for me

[moggy]

Thanks for replying

So in theory any umbrella company I register with should pay me by the month? Why say 10 weeks, I'm quite put off by this

Would this make any difference if I set up a ltd company. Does the agency still have control over the frequency of my pay? I reeeeally can't wait til end of September to get paid. If this is the case then I guess contractings not for me

you might want to check when you/the umbrella can invoice and when they can pay as an agency - in theory they should always be the same whether umbrella and ltd - no reason why they should be different

[escapeUK]

Thanks for replying

So in theory any umbrella company I register with should pay me by the month? Why say 10 weeks, I'm quite put off by this

Would this make any difference if I set up a ltd company. Does the agency still have control over the frequency of my pay? I reeeeally can't wait til end of September to get paid. If this is the case then I guess contractings not for me

It would be a bit naive to enter contracting without some money behind you. If you were on the minimum wage before, what skills do you have to bring to contracting? Are you sure you arent confusing the whole thing with a temp job?

[LisaContractorUmbrella]

WEUKS - you will always be reliant on the agency and you will be paid according to their payment terms whether you are Ltd or umbrella

[sillypenguin]

Well maybe I am, but if the agencies going to advertise it and advise me it was a temp job then who am I to blame to thinking it was. Also I've been a temp for various employers for 5 years now so I do have a lot of skills thank you very much
Cheers again I'll just need to check the terms with them again, wish they'd just given me the contract sooner ye know

[LisaContractorUmbrella]

Check the payment terms with the agency - if they are 10 week terms then you will receive your money from them after 10 weeks regardless of how you work. However, it could be that is the umbrella company's schedule; it would be unusual but not unheard of.

Also I would recommend that you do not work without a contract of employment with the umbrella company and also ensure that they are working under a business to business contract with the agency

[SunnyInHades]

I know of Ltd. contractors who typically wait 2-3 months for payment after sending in an invoice to direct clients (then have to chase), such time is typically for Ltd. company direct invoicing... consider this when starting yourplan B !

Agencies-Umbrellas in most cases dramatically up the payment process, you get cash flow at the cost of middleman fees and 20% extra tax.

A good agency will have fixed payment-to-umbrella/payment-to-ltd dates during the year, typically at 2 week intervals. You submit timesheets to them and they pay at the next payment date. If the end client doesn't/hasn't paid it's no concern of yours - its up to the agency to chase (and possibly take out loans 'gearing' etc. whilst they wait).. they get the upside when the payment finally comes through but you get regular cash flow.

Any umbrella worth it's salt should also be offering same day payments - the day the agency pay them they pay you. If your umbrella doesn't do this, ask them why not !

Umbrella 1:
"
Same day payments. our promise
100% of our customers
are paid the same day that we are, no excuses.
"

Umbrella 2
"get paid fast
nobody beats us on speed and accuracy
With <snip> you can choose to be paid
weekly or monthly and all our payments are made by same-day transfer.