How do we pay our contractors? – Sonovate explained

Our contract lawyers are paid on a fixed hourly/daily rate for their assignment and contract with Contax on a non-exclusive basis – ensuring IR35 compliance. Contax have a long-standing relationship with Sonovate, who are our online third-party timesheet and payment authorisers.


On a monthly basis, our contractors submit their timesheets online, which generates a link to the client to sign off. Contractors need to submit timesheets before the deadline to ensure clients have time to approve by 12pm on the first Tuesday following the end of the month.


Timesheets are to detail the days which the contractor has worked for that month of the assignment. There is no requirement for a detailed breakdown on a timesheet as the simple recording of days worked is sufficient. The system however allows you to keep a more detailed record of your working day.


Payment will be made on the Friday of that week to the contractors’ personal services company (PSC) and is made irrespective of when Contax receive funds from the client.


If our contractor’s PSC is VAT registered, then it will automatically charge VAT on their behalf. Otherwise, Sonovate provides information for contractors on how to calculate how much VAT has accumulated.


The Sonovate system automatically generates invoices from the contractor’s PSC to Contax Law the day before payment is made. All invoices are kept available to our contractors via the system – making their accounts easy to access.

Leave a Reply