Guaranteed payment from people4!

Prompt payment & invoice handling

people4business guarantees payment of all your contracts on a 30-day basis, so there’s no more waiting months for payment and wasting valuable time credit chasing.

We also handle all your invoicing and credit control – including generating all the invoices you will need.

This service is provided for all our Sellers out of our management fee – a 10% margin on your standard hourly rate. This margin is substantially lower than standard agency margins, so we’re confident that your rates will still be very competitive to Buyers.

Payment through a limited company

Because of people4business Limited’s legal status as an Employment Business, we need to be sure that you are paying all the tax and National Insurance you owe. Otherwise either we – or our Buyers – could become liable for any unpaid tax.

For this reason, all of our Sellers need to be paid through a limited company. This means that we can be sure that the appropriate taxes and national insurance have been paid.

If you are not working through your own limited company or a limited-company consultancy, you will still need to be paid through a limited company.

Sole trader Sellers will need to work through an umbrella company, which manages payment of taxes and national insurances on your behalf.

people4business Limited has entered into an agreement with «CXC», to provide low-cost umbrella services to people4business Sellers, called people4payments.

Your contract

Agreeing contract terms

When you are negotiating the final contract terms with your Buyer, you will agree the following:

the duration of the contract;

the invoice and timesheet frequency;

the final hourly rate; and

whether or not your Buyer gives permission for you to claim overtime and expenses.

Contract for Services

Once the contract details are completed, together with the standard terms and conditions, you now have a contract for services, which is the contract between you, us – people4business.com – and your Buyer.

Invoicing process

The majority of Buyers select monthly invoicing and weekly timesheets.

Monthly invoices are produced on the last Friday of the calendar month, to ensure that weekly timesheets coincide with the invoice cycle.

Invoices are generated when the end-of-month timesheet is approved.

You should ensure that you update your timesheets on a weekly basis, including hours worked and any overtime (if your Buyer has agreed to pay overtime).

 

Your payments

Payment in 30 days

Our usual business practice will be to pay you at 30 calendar days after submission of an approved final or end-of-month timesheet.

Invoices are raised either upon completion of the contract or, for those contracts lasting for longer than one month, on a monthly basis.

Monthly invoices are produced on the last Friday of the calendar month, to ensure that the weekly timesheet cycle coincides with the invoice cycle. Invoices are generated when the end-of-month timesheet is approved.

Expenses & Overtime

Expenses and overtime can only be claimed when a Buyer agrees to them. You need to agree whether or not expenses and overtime are allowed when you are agreeing final terms with the Buyer.

Once you have agreed terms, your Buyer will input the final agreed hourly rate, together with any agreement for overtime and expenses. You then agree these details and the final contract for services is created.

Fasterpay

If you want to be paid more quickly than 30 days, we are able to offer a Fasterpay service.

For an additional charge of 3% of your total payment, we can bring payment forward to 5 working days after the invoice has been raised.

You select Fasterpay at the point when you are agreeing to the contract.

This means that you select Fasterpay on a per-contract basis, rather than for each transaction. For contracts lasting longer than one month, for example, you could select Fasterpay for all your monthly payments – or for none of them.

Please note: 5 working days refers to the time we pay the invoice, we cannot guarantee that you will receive your payment within 5 working days, due to bank processing times:

• If you are paid as a limited company, we make payment to your company bank account after 5 working days, and you will have access to these funds as soon as your bank clears the payment;

• If you are paid through an umbrella company, we make payment to the umbrella company within 5 working days. You should check with your umbrella company how quickly they are able to process these payments to you.

How we pay you

Umbrella companies

When you are working through an umbrella company, we raise an invoice on your behalf for the work you have done, plus any agreed expenses. We invoice the Buyer for this total plus our commission. We make payment directly to the umbrella company, which will then deduct the appropriate taxes, National Insurance and charges, before paying you the balance.

Consultancies

If you’re working for a consultancy, your payment will take place in the usual way. people4business raises the invoices on your behalf and then makes payment to your consultancy, which in turn pays you.

Limited companies

If you are working through a limited company, we will raise an invoice on behalf of your company. Payment will be made to your company account.

VAT

If you are VAT registered, then all invoices that we generate on your behalf (from you to people4business) will have VAT added.

If you are not VAT registered, then all invoices that we generate on your behalf (from you to people4business) will NOT have VAT added.

As people4business is VAT registered, all of our invoices to Buyers (whether they are VAT registered or not) must have VAT added.

For more information

Please refer to the Sellers terms and conditions for more information on the invoicing process.

last updated 10.04.08