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44% of Contractors Owed Up To £60,000

There is nothing worse than putting your sweat and tears into a project, only to be “stiffed” when it comes time to getting paid.

Unfortunately it’s a common occurrence in the contracting world, where, according to a new survey, around 44% of contractors have completed projects in the last 12 months which have yet to be settled.

In other words, these contractors are still waiting for that “cheque in the post.”

Some contractors would even be willing to take a postal order…if it meant getting paid.

What makes this whole situation really gobsmacking is the fact that some of these unpaid projects are for £60,000.

Yes you read that right. Some clients seem to think it’s okay to leave you waiting for that kind of money.

You need that money to pay for your mortgage and to put food on the family table, but these clients just don’t care.

Sometimes they don’t even pay at all, and will do everything in their power to make sure you get “nuthin.”

Despite all of this doom and gloom, the report by IPSE (The Association of Independent Professionals and the Self Employed) did give us a slightly happy ending…going on to conclude that most contractors were satisfied with their work.

Regular readers of this blog will understand that right now is a boom time to be a contractor, and if you play your cards right then money should flow to your bank account.

Not only that, but when you have a trusted contractor accountant at your side you can expect to pay less tax (legally) and keep the tax man or woman at bay.

Back to the survey and it is the 18 to 34 age group who reported being not being paid on time…with 58% of this age group regularly having to chase up payments from clients.

What can be done though? According to the survey, giving more power to the Small Business Commissioner might just do the trick, especially if they start handing out fines to clients who don’t pay on time.

Another suggestion was for contractors and self employed people to band together and support each other.

Perhaps take to the streets in protest or even form angry mobs and vigilante groups to bring about their own version of “late payment” justice.

While the latter might be a bit extreme, it’s worth noting that contractors getting together might very well be the first step in stopping late payments once and for all.

My advice is to connect with other contractors in your industry via social media and forums.

“Contractor Power” will eventually win the day!

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