New contractor - when do I get paid?

[rik sherman]

???? I've *never* heard of an Umbrella paying this way - its just the base and additional amounts split on payslips.

From where do you "understand" this?

Just to clear things up in my mind what is the base and what are additional amounts? As I said I've never worked via an Umbrella so could easily have got the wrong end of the stick when reading posts on here.

[Paralytic]

Just to clear things up in my mind what is the base and what are additional amounts? As I said I've never worked via an Umbrella so could easily have got the wrong end of the stick when reading posts on here.

An Umbrella payslip will often split the total amount into a base pay (minimum wage) and additional amount (sometimes labelled as a bonus) but I've never heard of anyone getting those two parts across multiple payslips/timeframes.

[hungry_hog]

Just to clear things up in my mind what is the base and what are additional amounts? As I said I've never worked via an Umbrella so could easily have got the wrong end of the stick when reading posts on here.

some will have a retainers, so you get 90% of your day rate and 10% at the end of the contract

some will have holiday pay

some will have pension

[northernladuk]

some will have a retainers, so you get 90% of your day rate and 10% at the end of the contract

some will have holiday pay

some will have pension

And if they do this... Run... Run very fast.

[Old Greg]

And if they do this... increase your quote by one ninth.

FTFY

[LondonManc]

In answer to the question "when will I get paid?" I can't give a better answer than two you have already had.

1) It depends
2) What does the contract say

I can give some examples though:

I've doen work for a company for years that I invoice whenever I get to 10 days work done (do days as and when required) - generally paid by return
I've done work for a Big-4 as an independent; invoice at end of month for days worked, paid 60 days later
I've done work for a large Oil company; invoice at end of month, paid exactly 30 days later never a minute late
I've also done work where the client went "pop" and never got a bean
I've also done work where the contract says 30 days but they pay at about 40 days every time
Also done fixed price work where half is paid on start and the rest 3 months after work is completed - this type is a pain for cashflow, but if managed well can be very lucrative

I've never been lucky enough to find a decent rate gig that will pay weekly.

Overall, in terms of your answer, pretty much the same as mine; a qualified "it depends".

With reference to the item I've bolded - many IBs do weekly, but that's generally because the agencies are happy to accept the terms and know the banks are good for it. In effect the agencies are providing a "free" invoice factoring service for you. They'll still get paid on 30/60/90 day terms but know that the big banks won't not pay (excuse the double negative!)

[ladymuck]

The main annoyance, for me, with more frequent payment periods is the extra paperwork - four invoices a month vs one is a whole extra 15 minutes of effort.

[Old Greg]

The main annoyance, for me, with more frequent payment periods is the extra paperwork - four invoices a month vs one is a whole extra 15 minutes of effort.

Any time I've had weekly timesheets and invoicing, the agency has operated a self-invoicing system. But I'd always take the extra paperwork for improved cashflow / reduced risk of non-payment.

[zonkkk]

It depends on the agency and the terms of your contract.

My previous contract was a month payment terms but the agency had their own auto-billing system and they raised the invoice on a Wednesday for the previous week. Then I would be paid after 30 days on a Friday.

My current contract is 7 days payment terms. I raise the invoice on a Friday and they pay next Friday.

[jayn200]

I don't know if I agree that you shouldn't switch to contract work right now. It depends what contract opportunity you get. Definitely don't quit your job and then start looking for a contract role. I would only quit if the opportunity aligned well. If you get a contract role now in a company that isn't impacted by covid-19 or is positively impacted by covid-19 and the work is likely for 1+ years and the day rate is great and it's going to stay outside ir35 come april 2021 then why not go for it.

As far as when you get paid obviously its contract by contract as others have stated. I am being paid weekly with 10 day terms but I have also been paid monthly with 30 day terms and had a client who I had to chase for 60 days past due so that was 4 months before I got paid from that one. tulip happens but I'd imagine 90% or more contracts will have you paid within 60 days of start as that covers the majority of payments terms/situations.