• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

New contractor - when do I get paid?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #11
    Originally posted by prohobo View Post
    I'm interested in starting contracting, but some guides say you don't get paid for your first contract for 2-3 months. Is this true?

    I don't have the savings to coast for 3 months, but I thought after securing a contact I'd be paid weekly, so I'd only need to save up for 1 month or so.

    Please don't make me go back to permanent roles.
    Your contract will tell you how many days after invoice you will get paid, how often you can invoice and for what time period.

    Some people invoice weekly and get paid 7 days after invoice, others invoice monthly then get paid 7-45 days later -dependnet on terms.

    But before you can get a contract to see when you get paid you need a contract and the time to get one of those really does depend. I took a loan out to have enough to cover me for 6 months before I quit ( I landed a contract while still working my notice period). In the current climate I would not quit and try to break in to the market. To much competition and to few jobs unless you're ultra-niche?
    Last edited by BlueSharp; 26 June 2020, 14:36.
    Make Mercia Great Again!

    Comment


      #12
      If you've got a credit card or two, you could use them to bridge the gap.

      Ask your bank for a mortgage holiday now you're starting a new contract too.

      Then it's simply a case of the options:

      If you're going direct, it could be a case of fitting in with their schedule - you'll be on their B2B run done at the end of the following month for example.
      If you're sub-contracting, this could possibly be the worst for you - these can often be on a paid-when-paid basis.
      Typically if you're through an agency, you'll be on a weekly or monthly run. Generally, for a monthly or weekly run, you'd submit weekly timesheets and set up self-billing to that they generate the invoice for you as part of that. You'll then get paid for all amounts where they have a matching invoice, timesheet submitted and client-approved timesheet.

      "It depends" as the first answer was therefore both accurate and unhelpful at the same time!
      The greatest trick the devil ever pulled was convincing the world that he didn't exist

      Comment


        #13
        So rather than reading your contract, you decided to go on an internet forum and ask a bunch of randoms who have never read your contract.

        Could be 3 months, it could be end of the week, how are we to know?

        Comment


          #14
          Nowhere has prohobo say (s)he has a contact. The scenario was hypothetical based on "guides" and the answer to the only question asked is: It depends (as per first response).

          Comment


            #15
            Okay, so I understand now that it largely depends on the contract and whether I'm going through an agency or not. That makes sense, and I can see how lockdown could be making things weird right now.

            I think I'll try to find a nice contract through an umbrella but otherwise stick to perm until things calm down. Thanks for your responses everyone!

            Comment


              #16
              Originally posted by prohobo View Post
              I think I'll try to find a nice contract through an umbrella but otherwise stick to perm until things calm down.
              As I understand it payment via an Umbrella is also dependant on your contract as often the umbrella pays you a minimum wage and then once they receive money from the client/agency they pay you a bonus. Disclaimer I've not worked via an umbrella company.

              Comment


                #17
                Originally posted by prohobo View Post
                Okay, so I understand now that it largely depends on the contract and whether I'm going through an agency or not. That makes sense, and I can see how lockdown could be making things weird right now.

                I think I'll try to find a nice contract through an umbrella but otherwise stick to perm until things calm down. Thanks for your responses everyone!
                If you're perm now, I'd sit tight until both COVID and Brexit have settled down.
                The greatest trick the devil ever pulled was convincing the world that he didn't exist

                Comment


                  #18
                  Originally posted by LondonManc View Post
                  If you're perm now, I'd sit tight until both COVID and Brexit have settled down.
                  ^^ this

                  Unless your current job is damaging your health, stay put for a while longer

                  Comment


                    #19
                    Originally posted by rik sherman View Post
                    As I understand it payment via an Umbrella is also dependant on your contract as often the umbrella pays you a minimum wage and then once they receive money from the client/agency they pay you a bonus. Disclaimer I've not worked via an umbrella company.
                    ???? 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?

                    Comment


                      #20
                      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.

                      Comment

                      Working...
                      X