Not getting paid on time for overtime self-employed work

chaotic_j

Hi,

I've been doing overtime for my employer as self-employed. Happy with the arrangement until lately..

At first I was being paid on time, I sent an invoice to the business owner and they paid it.

I then had to go through the accounts department because they were too busy/hadn't paid me/etc. and since then I'm getting paid seemingly later and later.

The last time I queried it with the accountant I got told to print my invoice off, have one of the business owners check it, agree the hours done, sign it and then for me to give it back to her.

I give them 30 days to pay on my invoice, since last month I've started putting on to raise queries within 7 days (they have never queried anything) and I still can't get paid.

I'm aware I could create some terms & conditions to ask them to sign which would have a clause for late payment, but I do want to do some overtime as I need the money.

It's making me feel very angry and undervalued to have to keep chasing payment. I have chased with both the business owner and accountant..

Going forwards what would you suggest?

Many thanks.

Dazed_and_confused

I've been doing overtime for my employer as self-employed. Happy with the arrangement until lately..

Do you mean you are employed by a company but when you do overtime they treat you as self employed? :eek:

agrinnall

Is this entirely different work from what you do as an employee, under conditions that would legitimately make it valid self employment? If this rather unlikely scenario is correct then welcome to the world of late payment, perhaps you should vote Labour to support Jeremy Corbyn's campaign to crack down on late payers.

http://www.bbc.co.uk/news/uk-politics-39564284

chaotic_j

Dazed_and_confused wrote: »

I've been doing overtime for my employer as self-employed. Happy with the arrangement until lately..

Do you mean you are employed by a company but when you do overtime they treat you as self employed? :eek:

Yes, that's right. I think if they didn't do that then they would have to pay at least time and a half for the work plus holiday pay?

takman

chaotic_j wrote: »

Yes, that's right. I think if they didn't do that then they would have to pay at least time and a half for the work plus holiday pay?

So not only are they breaking the law they don't even pay you a higher hourly rate for overtime?

Dazed_and_confused

You're happy to go along with potential tax/NIC evasion and the business not complying with their responsibilities as an employer but unhappy with a delay in payment???

Masomnia

Tax/NICs is the business' problem; the delayed payment is OP's.

They wouldn't necessarily have to pay you 1.5 time and holiday pay, unless it's in your contract...

I don't understand why they're taking the risk.

paddedjohn

No law anywhere to say overtime has to be at a higher rate.

Energize

Dazed_and_confused wrote: »

You're happy to go along with potential tax/NIC evasion and the business not complying with their responsibilities as an employer but unhappy with a delay in payment???

What's strange about that?

If no tax is deducted he makes more money so no reason to complain, but if the payment is late he doesn't get the money so obviously he's gonna complain about the latter.

chaotic_j

Hi,

Just to clarify, I did think the overtime should be PAYE, but they wanted it set up this way. I think if there is any issue with it, then it's their problem not mine.

Whatever I get paid, goes on my annual tax return.

I was after some advice as to how to tactfully get paid on time, not the legality of the situation.

Thanks.

Dazed_and_confused

In that case i suppose it's one of the perils of (you) running a business, sometimes the people you are trading with don't pay their invoices on time.

I think Labour have recently announced a policy to try and help small businesses such as yours with the problem of late payments but in the meantime you could try the small claims court?