Work holding money

benji1666 · 16 June 2012 at 7:07PM

Hi all

I have become self employed (sub-contracting) i deliver parcels for yodel via a service provider and they are making me wait 7 weeks before i get paid and i have 2 kids a mortgage and need food petrol and to pay my car tax and car insurance and i have £0 can they legally do this as all the response i have from them is all there money is tied up in fuel for the vans but everyone else is paid on the 16th of every month

please help

thanx alot

Ben

McKneff · 16 June 2012 at 7:30PM

By everyone else, I presume you mean employees of the company.

Contracting or self employment is a different thing altogether.

I presume you raise invoices on a weekly/monthly basis. Unless you can come to some arrangement with the company you will have to put up with it.

Do everything in writing.

benji1666 · 16 June 2012 at 7:33PM

i have only been there 2 weeks and they have 40 people self employed they get there money on the 16th of every month so surley i should of got 2 weeks money today?

sorry if im sounding thick im new to all this

Ben

McKneff · 16 June 2012 at 8:35PM

Youre not sounding thick at all, you need to ask them why you are not being paid the same date as them. Are you on time with your invoices.

phead · 16 June 2012 at 9:14PM

Try asking in http://www.parcelforum.co.uk/ , they will know what normally happens.

prowla · 16 June 2012 at 10:05PM

When I've contracted I've generally invoiced at the ned of the month, with payment terms of up to 30 days.
So basically I could be paid 2 months in arrears.
(The government baloney about contractors being disguised employees cleverly ignores things like that.)

CAB_Malvern_Hills_representative · 19 June 2012 at 12:06PM

benji1666 wrote: »

Hi all

I have become self employed (sub-contracting) i deliver parcels for yodel via a service provider and they are making me wait 7 weeks before i get paid and i have 2 kids a mortgage and need food petrol and to pay my car tax and car insurance and i have £0 can they legally do this as all the response i have from them is all there money is tied up in fuel for the vans but everyone else is paid on the 16th of every month

please help

thanx alot

Ben

Ben

If you are truly self employed ( see adviceguide www.adviceguide.org.uk for clarification on these issues ) and they have agreed to pay you by a certain date then provided you have complied with their requirements then they appear to be in breach of this.

Assuming that you want to continue working for them then you need to set out your concerns in writing and ask for the situation to be resolved. Clearly there is a risk that they may decide not to give you any further work. Obviously they owe you the money but other than court action or persuading them to pay up it is unlikely that there is any other process you can use to get the money. Hopefully it is just a temporary blip on their part rather than an ongoing trend but only time will tell.

Another way to look at the problem is to see how you might improve your cash flow from other sources of income ( a common problem all truly self employed people face ) for example you might be eligible for working tax credit depending on what other monies you or your family have coming in. Often self employed individuals miss out on this. If you are not already getting this or help with other means tested benefits such as Housing or Council tax benefits visit your local CAB to get a benefit check. This is not the forum for detailed advice on these issues. Adviceguide will show you where your local CAB is.

Wywth · 19 June 2012 at 12:32PM

benji1666 wrote: »

Hi all

I have become self employed (sub-contracting) i deliver parcels for yodel via a service provider and they are making me wait 7 weeks before i get paid and i have 2 kids a mortgage and need food petrol and to pay my car tax and car insurance and i have £0 can they legally do this as all the response i have from them is all there money is tied up in fuel for the vans but everyone else is paid on the 16th of every month

please help

thanx alot

Ben

What were the agreed payment terms in the supply contract?

Have you invoiced your customer yet?

If the customer is late paying you, be aware that you would be entitled to add interest (8% I think) to late payments.

It may be that your customer is not late paying according to the contract. We have some customers where agreed payment terms are at the end of 3 months after the month of invoice. That means if it could be up to 5 months from when we start supply to when we actually see any money.

You need to ensure that the prices you are charging for supplying customers that are late payers (either permitted by contract or otherwise) are commercially viable for you.

pooch · 19 June 2012 at 12:45PM

If you are not actually getting paid, is your assumption that you are self employed correct?

Maybe they see you more as a volunteer?

Work holding money

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