smallbusiness.co.uk: Helping your business think big

A promising venture

Previously, we’ve looked at the reasons why many describe the...
Have your say »

RSS

Q: How long can I legally withhold payment on an invoice to a subcontractor?

Apr 28 2009

Answered by: Ashley de Safrin Ask a question

If you are unhappy with their work, then the amount may be open to negotiation. If you simply want to delay payment, you should think through the implications of this.

There may be no legal limit, but if you withhold payment for an unreasonable length of time, simply to help your own cash flow, then the subcontractor could refuse to do work for you in future. If you have a genuine problem, then talk to the subcontractor and see whether you can negotiate payment by instalments.

If you have also agreed to their terms and conditions, then you are legally bound to honour them as they form an agreement between you and the subcontractor.

Comments

There are currently no comments on this article

FREE Legal, Financial, Accountancy & HR Help

Aska Professional understands the challenges faced by small businesses. That’s why we provide instant access to professional advice and legal templates. FREE access to Solicitors, Accountants, Financial Advisors & HR Specialists. Ask our experts a question and get a personal response within 60 minutes. Sign up now to ask a question - FREE.

Bupa for Businesses

We understand that all businesses are different. To help you choose the right healthcare package for you and your employees, call us today on 08457 66 11 15 or alternatively find out more here.

Hiscox business insurance for small & medium businesses

Hiscox offer specialist business insurance for office based professionals and consultants. Hiscox understand's every business is different and work hard to understand the specific risks small businesses face. Find out which business insurance is suitable for you.

Polls

Contracts of employment Questions & Answers

Entrepreneurship

Ed Percival, Shirlaws Binfield Ask a question

Advice for employers

Peter Done, Peninsula Ask a question

Human Resources

Cecily Lalloo, Embrace HR Ask a question

News

smallbusiness.co.uk: Helping your business think big

Apprentices are liable to switch off if not given a wide range of tasks

Apprentices lack inspiration

Young apprentices are dropping out of training because employers are not providing a sufficiently-rounded programme to inspire their interest, a prominent manufacturer warns.

Latest apprenticeship fund unveiled

A new £6 million round of government funding has been allocated to support thousands of degree-level higher apprenticeships.

Nameless CVs for fairer hiring

Businesses should encourage all job applicants to send in CVs that do not identify their name or ethnic background, says an employment law specialist.

TUC rallies against tribunal fees

Introducing fees to take claims to employment tribunals could be a huge barrier to equality at work, says the Trades Union Congress.

Jobs market to remain unstable in 2012

Unemployment has hit a 17-year high of 8.4 per cent, finds data.

Higher education not developing work skills

A fifth of UK employers believe school leavers make better employees than university graduates.

Forum supports education-level skills boost

The Forum of Private Business has welcomed government plans to improve how IT is taught in UK schools to better prepare young people for work.

Workers 'underused and demotivated' by lack of support

The underuse of skills in the UK is resulting in lost productivity both for businesses and the economy as a whole, argues a think tank.

Youth employment scheme backed by lobbying group

The Confederation of British Industry has formally backed the government's £1 billion Youth Contract programme aimed at ensuring ‘every young person in the UK is in education or employment’.

Employee pay rewards stagnant in 2011

The majority of company staff saw their pay packets remain static or shrink in 2011.

Employment opportunities on the rise

Job opportunities were 17 per cent higher in December compared to the same period in 2010 and more than a fifth higher than two years ago, according to the latest Reed Job Index.

Guides & Tips

Businesses should beware legal issues when employing interns

Interns and the law

Liz Isles, a senior consultant at employment specialist Croner, explains how to navigate legal issues when employing interns.

Making staff cuts doesn't mean you have to give people the axe.

Reducing salary

There are other ways of reducing your staffing budget without having to take the axe to your workforce.

Guide to written statements of employment

Every employee should be given a written statement of employment that clearly lays down the rules that both you, as the employer, and they must abide by.

Store

FT Guide to Personal Tax

The FT Guide to Personal Tax is published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and John Bloxham, this unique guide gives step-by-step advice to completing your tax return as well as over 230 tax-saving tips.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.

FT Guide to Business Start Up

The FT Guide to Business Start Up 2012, published by Pearson Education, is written by Sara Williams, CEO of Vitesse Media Plc. This unique guide has sold over two million copies. It offers practical advice about starting and running your own business.