pay your invoice or watch your windows

[buzzlightyear]

I'm sick and tried of sending invoices to customer saying pay within the seven days and some customers try and pay late .I run a business not a charity, I now you have to give them 30days to pay in the invoice ,but stuff that ,we have all been their waiting for payment .I now send them pay now or face the wrath of buzz.

 

[Toneyz]

In what way have you not compiled

Not issuing the electrical certificate and I think the schemes take a dim view of this if they complain.

 

[MG201]

I’m not sure but as long as it is completed and issued as soon as payment is made there should be no issue

 

[Santa]

The company I worked for in Birmingham paid at the end of the month following the month the job was done. In the worst case, a job done on Jan 2, would not be paid for until early March. This was clearly stated on the order and no job would be paid for without an order.

Privately, I tend to pay quickly. For small jobs; on completion, but for more expensive work, I like to hold back at least a part, to make sure that nothing blows up/falls off as soon as the tradesman leaves. I work on the principle that I might well want them again and if they know I am a 'good' payer, I might get some benefit.

Discounts for prompt payment are a very good incentive.

 

[Jjc]

You are too up tight about this

I chase after 30 days .... Rarely before

That said the vast majority of my clients pay within 7 days

Building up a cash balance in my business account allows me to take this can you

 

[Jjc]

Good luck with that approach .... sounds like it doesn’t work

7 days for payment is a bit quick imho .... unless it’s after the 24th of the month

Can you walk out of a shop without paying for the goods and say I'll pay you within 28 days? Of course not ,so what's the difference you should be paid asap.

 

[chrisdungan]

How many sparkies on this site use one of the many mobile card payment devices we have down under??
I'm a Kiwi I rent a mobile card machine (Payclip) from my bank (BNZ) for $30/ month plus VAT that does chip and pin/swipe and contactless card payments. the Payclip bluetooths to a phone app and the payment goes direct into a seperate card account. Credit card payments cost me 1.75% , the other card payments cost me nothing. Longest time for the banks to transfer the money has been 36 hours.
Usually use it for those small domestic jobs where you're there for 2/3 hours with minimal materials. I write a manual invoice on the spot and say " just gimme ya card" Well I actually ask nicer than that but you get the picture.

 

[Harry_P]

I’m not sure but as long as it is completed and issued as soon as payment is made there should be no issue

You have no right to hold onto the electrical certificate and at the same time demand payment, If you are holding the certificate then there is no reason anyone should pay you anything because the job isn't finished until you give them the certificate. If you withheld a certificate and tried to sue someone for non payment you would be laughed out of court

 

[Darkwood]

Can you walk out of a shop without paying for the goods and say I'll pay you within 28 days? Of course not ,so what's the difference you should be paid asap.

The difference is important and no a contractual standard agreement for services done is 28 days or 1 month unless otherwise agreed, to try relate this to buying a sandwich at gregs or a tv at comet is a poor analogy, if you buy any product from any store then legally you can take it back within a given time period and ask for your money back for varoius reasons, the same applies to contractual work, once completed they have a settle in period that allows them to contend the work before payment, if you are financially struggling then don't blame the customer, blame the economy or your business model.

 

[Midwest]

You have no right to hold onto the electrical certificate and at the same time demand payment, If you are holding the certificate then there is no reason anyone should pay you anything because the job isn't finished until you give them the certificate. If you withheld a certificate and tried to sue someone for non payment you would be laughed out of court

I thought BS7671 was kinda worded in that way, but can't find that wording at the mo. I always issued my certificates before payment.

Going back to my car analogy, MOT's are now stored electronically, and you don't get the old embossed certificate. So even though you've not paid before picking up the car, the certificate is completed. However, you've no access to that certificate until you've paid, and then get a paper copy.

I guess it would be difficult to hold onto an EICR, as the customer would need to see, as thats your 'work', other than actual work done and EIC etc issued.

I know of a few sparks that hold onto the certificate until payment is completed, especially where builders are involved.

 

[Harry_P]

I thought BS7671 was kinda worded in that way, but can't find that wording at the mo. I always issued my certificates before payment.

Going back to my car analogy, MOT's are now stored electronically, and you don't get the old embossed certificate. So even though you've not paid before picking up the car, the certificate is completed. However, you've no access to that certificate until you've paid, and then get a paper copy.

I guess it would be difficult to hold onto an EICR, as the customer would need to see, as thats your 'work', other than actual work done and EIC etc issued.

I know of a few sparks that hold onto the certificate until payment is completed, especially where builders are involved.[/

I thought BS7671 was kinda worded in that way, but can't find that wording at the mo. I always issued my certificates before payment.

Going back to my car analogy, MOT's are now stored electronically, and you don't get the old embossed certificate. So even though you've not paid before picking up the car, the certificate is completed. However, you've no access to that certificate until you've paid, and then get a paper copy.

I guess it would be difficult to hold onto an EICR, as the customer would need to see, as thats your 'work', other than actual work done and EIC etc issued.

I know of a few sparks that hold onto the certificate until payment is completed, especially where builders are involved.

If it eventually went to court it would go something like this....

Judge: why haven't you paid Mr sparky for the work he did?

Client: because I haven't received an electrical certificate

Judge to Mr sparky: why are you expecting payment for something that you haven't yet provided? (Certificate)

Mr sparky: errrrrrrrrmmmmmmmmmm

Judge: case closed and Mr sparky can pay the costs of this court case and the costs of the client

 

[Midwest]

What?

 

[rapparee]

We pay 30 days after month end.

And if we pay later than that, sure what the hell.... do you want the work or not. You can be easily replaced.

 

[Bellendian]

Can you walk out of a shop without paying for the goods and say I'll pay you within 28 days? Of course not ,so what's the difference you should be paid asap.

I do this every day! As I imagine pretty much everybody here with a credit account does!

 

[Toneyz]

We pay 30 days after month end.

And if we pay later than that, sure what the hell.... do you want the work or not. You can be easily replaced.

Does that mean that when you do work and the company doesn't pay you at 30 days you take the same attitude?

 

[MG201]

There are lots of credit schemes now that are trying improve payments , a good incentive to the tier 1,2,3 contractors to pay earlier is that they get the Benefits of better prices the contractors who pay late get a % added to all quotes to aid the delay in payments

 

[rapparee]

Does that mean that when you do work and the company doesn't pay you at 30 days you take the same attitude?

I am an employee I get paid weekly. I lost £500 in total deductions this week.

Guys who are self employed need to get it into their heads that they are not working for wages. They are charging big money, and paying lesser tax, so they have to play by big boys rules.

I've no sympathy. If you aren't able to manage your finances to take the rough with the smooth, maybe you should go and work for someone else and be a direct employee

 

[baldelectrician]

Almost all my work is domestic
I offer pay by link via email as well as a card machine in the van.

I do not usually get lat paying customers- I have had one in the past 2 years.
I sent him the invoice, week later the reminder (7 day notice) and he paid 4 days later- all in 2-3 weeks from invoice to payment

I have my laptop on site with me (as I use it to do my certs while there), this means I can use a spread sheet to total the job up and the client pays there and then.
My card machine has a roaming sim which jumps between T-Mobile, O2 and Vodafone so I usually have no problems taking payments.

 

[rapparee]

Almost all my work is domestic
I offer pay by link via email as well as a card machine in the van.

I do not usually get lat paying customers- I have had one in the past 2 years.
I sent him the invoice, week later the reminder (7 day notice) and he paid 4 days later- all in 2-3 weeks from invoice to payment

I have my laptop on site with me (as I use it to do my certs while there), this means I can use a spread sheet to total the job up and the client pays there and then.
My card machine has a roaming sim which jumps between T-Mobile, O2 and Vodafone so I usually have no problems taking payments.

Would you really classify 3 weeks as a late payment.

How often do members on here pay their wholesalers.

 

[GMES]

Would you really classify 3 weeks as a late payment.

How often do members on here pay their wholesalers.

Good point, all my wholesalers are 60 days from end of month, so potentially 90 days in some cases.

 

[baldelectrician]

Would you really classify 3 weeks as a late payment.

Yep
My terms state payment on completion of electrical works (that way they cant wait until other trades have finished before paying me)

They accept the terms prior to the work starting- I am really ---- about this on works over £100- especially with landlords.

 

[GMES]

It's obviously the difference between Domestic and industrial / commercial , I've got several customers that won't even look at my invoices for 60 days.

 

[Darkwood]

I am an employee I get paid weekly. I lost £500 in total deductions this week.

Guys who are self employed need to get it into their heads that they are not working for wages. They are charging big money, and paying lesser tax, so they have to play by big boys rules.

I've no sympathy. If you aren't able to manage your finances to take the rough with the smooth, maybe you should go and work for someone else and be a direct employee

Sorry but ignorance is your enemy here we pay more tax, pay more NI and we have no luxuries like sick pay and holiday pay, when you go self employed it's a big drop in your extras and when you add your business insurance etc and bank charges it all scrapes away that higher hourly rate, only those good at their job and in demand succeed.

 

[rapparee]

Sorry but ignorance is your enemy here we pay more tax, pay more NI and we have no luxuries like sick pay and holiday pay, when you go self employed it's a big drop in your extras and when you add your business insurance etc and bank charges it all scrapes away that higher hourly rate, only those good at their job and in demand succeed.

But you should be incorporated as a limited company

No income tax bill.

Pay yourself a salary of £8000 and then take the rest as a dividend. You would only have to pay corporation tax and you would have lots of tax write offs.

 

[Toneyz]

But you should be incorporated as a limited company

No income tax bill.

Pay yourself a salary of £8000 and then take the rest as a dividend. You would only have to pay corporation tax and you would have lots of tax write offs.

You have to pay tax on dividend payments now.

 

[Darkwood]

But you should be incorporated as a limited company

No income tax bill.

Pay yourself a salary of £8000 and then take the rest as a dividend. You would only have to pay corporation tax and you would have lots of tax write offs.

As expressed in the last post, that loophole was closed years ago, going limited has certain benefits but also it has a few drawbacks and my accountant says it isn't in my interest to go limited at the moment where as it may have been in times gone by. The point I was getting at even if you are limited or not is when you factor in sick pay losses, holiday pay losses the higher taxation like NI you pay and all your business insurance costs etc it quickly make it less profitable than been employed and getting the bog standard, I get these comments all the time in the pub, 'oh you must be loaded' .. but they don't realise either that work isn't a constant running tap and you have to cover all the issues like failed or faulty products... there has been many a time over the last decade that I wished I never went on my own but plenty of times where I see the advantages of been my own boss.

 

[GMES]

Totally agree with @darkwood , a lot of people are under the false impression that being self employed makes you better off financially all the time, this simply isn't true, yes there are perks or we wouldn't do it.
I have 3 lads on th books fulltime and believe me when you consider what they take home with no stress, holidays when they want and knowing if they are off sick they are getting paid, not to mention that I am also paying into a pension pot for their retirement trust me they haven't got it bad.