Self employed - can company pay me on time but less than agreed?

2

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  • Comms69
    Comms69 Posts: 14,229 Forumite
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    Deastons wrote: »
    I'm not sure about your question - I'm assuming your point is that they're two different things? He runs a small limited company.

    Yes, very different.

    Sangie’s advice stands; but your friend is not self employed.
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    Deastons wrote: »
    So what they're doing is not correct? As in, if it did go to court, my friend would win?

    This company does it with all the people they use, so they're considering taking some sort of action.

    Taking it to court would achieve nothing.

    Best advice is vote with your feet and refuse the work
  • MEM62
    MEM62 Posts: 4,746 Forumite
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    Comms69 wrote: »
    Taking it to court would achieve nothing.

    Best advice is vote with your feet and refuse the work

    Absolutely. If there is no specific contract in which payment terms were agreed the court case would fail anyway. Stating 30-day terms on an invoice issued after the work was completed is meaningless.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
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    Comms69 wrote: »

    Best advice is vote with your feet and refuse the work


    It's not the best advice if, as seems to be the case, there is in fact a need to work for this company in the future because of their dominant position.
  • Gavin83
    Gavin83 Posts: 8,746 Forumite
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    Deastons wrote: »
    This is for my friend, but I also regularly work for this company hence why I have a particular interest. Not working for this company is not possible as they're the largest in our industry - a PLC with £3bn+ turnover.

    That gives you even less options then. As others have said taking them to court will likely mean you'll never work for them again, if that's not possible in your industry then it isn't advisable. As unfair as it is it appears they hold all the cards here.

    So I guess either take the 5% cut or wait 90 days for payment, whichever is preferable.
  • trailingspouse
    trailingspouse Posts: 4,035 Forumite
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    It's normal for big companies to ride roughshod over whatever payment terms you want to agree with them. We normally state 'payment within 30 days of invoice date', and the vast majority of our clients abide by that - but one or two don't. One of our clients simply says their payment schedule is 60 days, take it or leave it; the other (NHS) accepts our 30 days payment terms but then consistently pays on day 59 (the day before Statutory Interest becomes payable).


    My feeling is that, so long as you know that this is how it will be, you can work accordingly. Far worse is the company that agrees to 30 days then doesn't pay.


    So you have to take the pain for 3 months - but you will have money coming in for 3 months after the end of the contract. Swings and roundabouts.
    No longer a spouse, or trailing, but MSE won't allow me to change my username...
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    agrinnall wrote: »
    It's not the best advice if, as seems to be the case, there is in fact a need to work for this company in the future because of their dominant position.



    Indeed, but the alternative is to simply accept the situation. The OP is unwilling to do that
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    trailingspouse wrote: »
    It's normal for big companies to ride roughshod over whatever payment terms you want to agree with them. We normally state 'payment within 30 days of invoice date', and the vast majority of our clients abide by that - but one or two don't. One of our clients simply says their payment schedule is 60 days, take it or leave it; the other (NHS) accepts our 30 days payment terms but then consistently pays on day 59 (the day before Statutory Interest becomes payable).


    My feeling is that, so long as you know that this is how it will be, you can work accordingly. Far worse is the company that agrees to 30 days then doesn't pay.


    So you have to take the pain for 3 months - but you will have money coming in for 3 months after the end of the contract. Swings and roundabouts.


    Atleast with the NHS you know you'll get paid. Unfortunately in the quest for savings the approval process is a mile long
  • stator
    stator Posts: 7,441 Forumite
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    Start looking for other clients. When they start making arbitary cuts to invoices, it means their cashflow is in trouble. They will probably be bankrupt in a year or so
    Changing the world, one sarcastic comment at a time.
  • ssparks2003
    ssparks2003 Posts: 809 Forumite
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    You talk about the terms on the invoice, but what are the standing terms from the company, what were the terms mentioned on the PO? Most larger companies will not consider trading on smaller companies terms so your friend may just need to accept it as the realities of business
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