Payment/advice am I overreacting /self employed

[Helpme17]

Am I Overreacting About Late Payments?

I’d really appreciate some advice on whether I’m overreacting in this situation.

I’m a single female living in a one-bedroom house, running a car, and working part-time after some time off for surgery. My work situation has been stressful, and I’m at a breaking point. Here’s the backstory:

Last year, I worked one day a week at a school through an agency, doing different roles. Eventually, the school decided they no longer wanted to work with the agency and asked me to either leave the agency and continue working for them directly at a higher pay rate or stop working there altogether. I wasn’t under contract with the agency and had no loyalty to them, so I agreed to work directly for the school.

The school is 28 miles each way, meaning each shift is a 60-mile round trip that I need to budget for. The arrangement changed slightly as well — instead of invoicing the agency, I had to invoice the school directly and wait 30 days after submitting my invoice to get paid. The problem is, they’ve missed my invoices multiple times, leading to late payments.

In July, my invoice was overlooked, and I had to wait the entire six-week summer holiday before the school reopened so I could chase the payment. Another time, a staff member left, and my invoice was late again. Every time this happens, I end up getting hit with extra charges because my bills — council tax, rent, car insurance, Wi-Fi — all rely on that payment. I’ve even had things go to bailiffs because of it.

The late payments have been consistent:
• October and November were late.
• In December, I was due to be paid on the 20th but was told my invoice was missed, and I’d have to wait until January. That payment was meant to cover Christmas, so you can imagine how that felt.
• January’s payment finally came on the 15th.
• February’s payment arrived on the 14th.
• This month, I was expecting payment on the 14th again, but when I contacted them today, they told me I won’t be paid until the 28th.

This latest delay means I’ll have to fund the 60-mile trip for six weeks before getting paid, and I just can’t keep doing this. I’ve already sent my invoice for the two weeks I worked in March, but my plan is to hand in my notice on Monday.

Am I overreacting? I feel like I’ve been patient, but the lack of consistent pay is putting me in a really difficult position financially. I’d really appreciate any advice.

I would ask the school to put you on a permanent contract so you get paid monthly. That’s really unfair to make you wait (and get charged from however many places for late payments).

They have said my position will remain self employed because they are a academy? I didn’t go back after Christmas as again they failed to meet “that I would be paid once school re opens”

head teacher contacted me and said they will keep an eye and to ensure I allow 30 days from invoice
im paid £30+ ph been there x3 years, built up great relationship with children and staff

im just wondering if I’m overeating

That’s terrible, imagine the horror of the PAYE staff if they didn’t get their wages one month.
You’re not over reacting at all, in fact I think you’re under reacting, your invoices should be paid on time, every time!

The school has stated that my position will remain self-employed due to their status as an academy. I did not return after Christmas because they once again failed to uphold their commitment to pay me upon the school’s reopening. The Head Teacher contacted me, advising that I allow 30 days from the invoice date for payment processing. I have been earning £30+ per hour and have been with the school for three years, during which I have built strong relationships with both students and staff. I am now contemplating whether my concerns are justified.

Bill them for any late payment charges you are issued with due to their late payment and explain the reasons why they are necessary.

They refused late payment invoice. I have the reply them simply saying no. I was thinking court could be a long hard journey.

Up your rates then.

Come in on your appointed day snd sit in the office until the late invoice is processed. Do no work that day until it is sorted. I used to wait months to be paid by an educational establishment. When I worked out how many hours I'd spent chasing pay I simply didn't do one of our agreed projects, to make up for the time I'd wasted.

I’m self employed and have a three strikes and your out policy.
find alternative clients and vote with your feet. Bad payers never change. If you want to give them one last chance send them a strongly worded email or letter outlining your payment schedule and dates by which you will be paid and fees for late payments. But be prepared to walk away. You have to be tough and don’t take no for an answer

They need to stop this. That's shabby treatment of staff no matter their employment status

I do not put up with constant late payers, actually these days they do it once, that's it they broke the contract with me, I no longer provide a service for them. I spent far too many years standing outside banging on doors asking WTF is my money.

I don't know how many hours you are working (apologies if I missed that) depending on hours worked, 60 mile round trip is eating into your earning time and taking up resorces too.

There is no reason why they can’t put you on the payroll and in fact they are potentially acting illegally in not doing so. Presumably you don’t have any employee rights, sick pay, holiday pay, pension contributions, NI record? Do you do a SA tax return?

You really need to wise up a bit. Citizens Advice could maybe help you.

look around for a better job closer to home.

in the meantime add “late payment fees” to your invoice following any that are not paid in time.

The school has stated that my position will remain self-employed due to their status as an academy.

They are talking bullshit. I very much doubt that you are self-employed in law. I'd suggest finding a better employer.

Why are you offering credit terms of 30 days?
The head is getting paid a regular amount on fixed days.

I would amend your contract terms a split fee
• a service level agreement of being providing X hours/ minimim of 3 or 3.5 days per month invoiced on or before the start of the month and paid into your account the 28th/29th/30th of the month, plus
• a charge rate over and above SLA to catch up the full hours worked the prior month, plus
• a late payment administration fee equal to 1 day for every 7 days the payment is delayed.
• sick /holiday leave reduction in SLA if your attendance is not Yhr / X hr

If they are decent they should have no problem in agreeing to the terms as you have a long work history and can stop or part pay the invoice if your are sick for more than 1 day.

The school has stated that my position will remain self-employed due to their status as an academy.

That does not follow. The fact they are an academy makes no difference to whether they can employ you.

You are entitled to charge interest on late payments at 8% over the Bank of England base rate. However, that isn't very much as this is an annual rate of interest. If they are one month late on a payment of £500, the interest is a little over £5. You can take them to court for this and would recover your court costs from them, but it probably isn't worth it and may result in them dropping you completely.

They are probably saving money by employing you direct rather than through an agency. It also gives them the flexibility to pay you late, whether that is through incompetence or managing their cash flow.

I would be clear with the head teacher that the next time they miss a payment you are going to stop working without notice. That would hit them much harder than anything else. They would have to pay agency rates if they need someone else to do the job, which is likely to be significantly more than they are paying you. Either they pay you on time or they find someone else.

So I have left. Dose anyone think this Is over the top or??

My Final Demand
I am claiming the following amounts:

1. Unpaid Wages: For the six weeks I was unpaid during the summer holiday in July 2024: £900.
2. Travel Expenses: Travelling 60 miles
3. every Tuesday over the past year, calculated at the HMRC-approved mileage rate of 45p per mile: £1,296.
4. Late Payment Fees: For six months of late payments (October, November, December, January, February, and March), using a standard fee of £40 per late payment: £240.
5. Compensation for Financial Stress:
6. Considering the financial burden and significant stress caused by these delays, I am claiming £300 in compensation.

Total Final Amount• .2736.

the photo didn’t load, dose anyone know it I’m entitled to these amounts?

On the assumption that you are self-employed, you can only claim in line with your contract, including any terms implied by law. I am guessing from your previous posts that there is no written contract, and that you simply agreed to work certain hours during term times in return for an agreed hourly rate. On that basis:

1. No. Unless your agreement with them specifically stated that you would be paid during the summer holidays, you are not entitled to claim this.
2. No. Unless your agreement with them specifically stated that they would pay you mileage, you cannot claim this.
3. This seems to be part of 2. The same applies.
4. Yes, you can charge them £40 for each late payment. You can also charge interest.
5. No.
6. This seems to be related to 5. Again, no.

If you are in fact a worker or employee, the answers may be different. You may, for example, be entitled to holiday pay, although it still wouldn't be for the full 6 weeks.

The only way you can enforce payment if they refuse is to take them to court. The courts will not enforce alleged debts for random amounts of money that are not in your contract, no matter how justified you may think they are.

Well if you're self employed what are you T&C's? You should have provided them with one including your payment terms and late payment fees.
It sounds very much like you are working inside ir35 if they are your only 'client' and are dictating payment terms/rates. They are avoiding paying NI, pension and other staff benefits. You can't claim travel costs for example if this your only place of work. Have they done a cest assessment and deemed you outside ir35?
You can check yourself here>

www.gov.uk/guidance/check-employment-status-for-tax

You are self employed and they are purchasing your services.

You tell them what your standard payment terms are, not the other way round.

From now on, I suggest that you invoice them monthly in advance for the anticipated hours you are going to be working each month. So invoice April's hours at the end of March. Any adjustments can be added or deducted the next month. If they don't like it, tell them that they haven't been abiding by the payment terms so you have been left with no alternative.

I'd also start invoicing them separately for late payment fees. A flat charge of £5 a day for every day they are beyond your standard terms should do it. Put it in (extremely) small print at the foot of the invoice.

I don't see how you are Self Employed, its not a choice either you or the School can make.
It looks to me like you should be PAYE

The test for self employment is not simple. If OP is not under direct supervision when working, submits invoices to get paid, pays her own NI and tax, does not get holiday or sick pay and operates under a contract (all of which seem to be true from OP's posts), she is likely to be self-employed. If she can work for other clients as well as this one and charge different fees, that would also point towards her being self employed.

This.

See https://www.citizensadvice.org.uk/work/check-your-employment-status/

Possibly but a lot of recent test cases that HMRC have won have centered around Substitution and I would be surprised if OP were able to fulfill that.
You are correct though, she MAY be seen as SE but as you also say its not simple.

I’m not sure why you would charge mileage if not in contract? Unless they’ve agreed to pay you mileage you can’t just add it in. Also I’d the six weeks unpaid summer pre agreed I’d assume it was a term time contract or what are the cancellation terms for missed sessions? I do think you can charge them interest for late payments but £40 seems high and I don’t think you’ll get compensation.

You have my sympathy I’ve been self employed and late payers were the bane of my existence.