PAYE... 2 months and no pay?

controversialmike

Hi all,

Hope you can offer some advise.

I'm currently working freelance on a 2 month contract (3 days per week). Even though i'm registered self employed, my employer has insisted that I work on a PAYE basis. Now they are stating that I have to wait 2 months in leu to get paid, ie the work I did on the first of June is to be paid at the end of Aug (a far cry from the industry standard).

I'm aware that on a Self Cert basis, there is a maximum of 6 weeks from invoice but what are the legal terms for PAYE payment?

There was no written contract, just a verbal agreement and nothing was discussed regarding payment.

Thanks in advance.

Mr.C

princessdon

As a contractor you are paid *later* than PAYE so does this not equal out?

depends on the industry - my OH works in IT and when a contractor worked on 30 days (then invoice) then 30 days payment so 60 days pay run.

when he went PAYE he did 60 days (to co-incide) with his contractor payment (I think new PAYE would be 30 days) but so they didn't pay twice he was on 60 days.

But he then got x 2 salaries the following month. If they are not doing this then for any industry it isn't standard.

LTL

I can't help for now, but for future you should ALWAYS get a signed contract. If not, at least some sort of written communication (letter/email) with ANYTHING which you feel need clarification (pay, payment terms, etc etc)

controversialmike

princessdon wrote: »

As a contractor you are paid *later* than PAYE so does this not equal out? If they are not doing this then for any industry it isn't standard.

I wish my industry was as organised as I.T.!! Although it sounds like a strange set up your OH was working!?! I'd have thought that by shifting over to PAYE, regardless of being a contractor, he (and myself) are then an employee of the company and are entitled to holiday, sick pay etc. I just assumed it also meant standard employee terms of payment for work completed, ie you get paid at the end of June for the work done in June).

What they are saying is that it's 2 months rolling, ie pay will arrive at the end of the "second" month following. No one else find this strange?

The standard for both Self Employed and PAYE in my industry is "end of the following month". I'm not trying to press them for 4 weeks payment, just the industry standard.

There are clear guidlines on paying Self Employed invoices so i'm sure there's similar for PAYE, just can't seem to find them!

Savvy_Sue

Are you working fixed hours?

When we've had staff on irregular hours, we have paid them at the end of the month after the one in which they've worked, so July's hours wouldn't be paid until the end of August. Otherwise you potentially over or underpay people, if they don't work all their planned hours, or work more than their planned hours. Just tidier not to start the calculations until it's all done and dusted.