How to become an IT Contractor - Becoming an IT Contractor

Parasol PAYE umbrella company
Over 32,000 satisfied contractors.
Get paid quicker. Call 0800 5836000.

Late payment epidemic - could the worst be over?

Posted Nov 30, 2009

Another sign that the worst of the recession may be over has come in the form of a marked reduction in the average time businesses are made to wait until their invoices are settled.

According the the latest Late Payment Index from Experian, October 2009 saw UK businesses settle their bills in the quickest time since April 2008.

Businesses tool 20.99 days beyond their agreed payment dates to settle their bills during October, compared to 23.20 days one year ago.

In the contracting world, limited company contractors who work direct for clients are potentially at most risk from late paying clients, although contractors working via agencies may also suffer late payment problems on occasion.

The late payment problem varies greatly across the country, and across industry sectors.

The worst region for late payers is the North West at 24.68 days late, the best are the South West and South East at 16.39 and 16.95 days respectively.

The worst paying industries include Property (33.18 days), and Telecoms (33.39 days), with 'IT' coming in at a healthier average 16.58 days.

Further information

Find out more about how contractors can stay on top of late payment problems - from finding out the correct contact in your client's accounts department to chase up, to calling in a debt recovery specialist as a last resort.

Please scroll down for related articles

Contractor Services


Related Articles

Contractors warned to be vigilant over HMRC tax probes
The PCG has warned contractors to continue being vigilant over IR35 as HMRC appears to be adopting a more devious approach to tax enquiries.

PAYE overhaul on the cards as Coalition launches another consultation
The latest Government consultation could result in a radical overhaul of the PAYE system, in an aim to reduce costs for both HMRC and employers.

PCG announces inaugural freelance lecture
The PCG is to hold its first freelance lecture in London this November, supported by the Telegraph Media Group.

Security cleared roles should be open to all contractors
The Government has released further security clearance guidance which aims to reiterate that contractors should not have to hold existing clearance in order to apply for sensitive roles.

Jobs report shows private sector recovery, but concerns over public sector cuts
The latest REC Report on Jobs shows that both permanent and contract job appointments increased in July, however the rates of growth have slowed a little.

New legislation archive gives access all UK laws since 1267
A new website has been launched which brings together every law created since 1267 - providing access to a staggering 6.5 million documents.

Recruiters support Government plans to review IR35
A leading recruitment body has announced its plans to work with the OTS to develop alternative legislative approaches to IR35.

Job ste reports increased number of contract roles advertised
A recent IT skills reports shows that the sector continues to climb out of recession, with contract roles continuing to increase.

Recruiter outlines Top 10 ITcontract roles of 2010
A recruitment consultancy has outlined the UK's most in-demand IT jobs so far this year - dominated by developer positions.

New body launched to simplify tax system - including IR35
Business groups have responded positively to the launch of the Office of Tax Simplification. One of its tasks will be to review IR35.

Limited company formation numbers on the up
The number of limited company formations has started to rise once again following two years of falls, according to Companies House data.

Government asks us which laws should be scrapped. IR35 anyone?
The coalition has launched a new site to enable people to suggest which laws and regulations should be scrapped. Unsurprisingly, IR35 has already been nominated numerous times.

Union angered as HP keeps contractors on board, but axes employees
Hewlett-Packard is to lay off a further 934 workers, with further cuts possible. The company still retains 2000 contractors, which the Unite union says "adds insult to injury".

IT recruiter warns that migration cap could hurt economy
An IT recruiter has warned that a cap on migration could cost the UK economy dear, as businesses will not be able to source the key workers they require.

Contracting industry encouraged by Budget measures
The contracting industry has broadly welcomed the Emergency Budget, as most contractors have escaped relatively unscathed.

Qdosconsulting

Accountants

Umbrella Companies

Contractor Services

Contractor Financials

CONTRACTOR GUIDES