Agency won't stop Self Billing

[openshac]

I started a contract last month with a new agency. Before starting I opted out of the Self Billing arrangment as allowed and clearly stated in the contract. They confirmed that I had been withdrawn.

I invoiced them at the end of the month but a few days later have received a document from them that:

• says "SELF BILL INVOICE" across the top
• has the wrong Invoice Number
• has the wrong Invoice Date on it

So far they've said that they can't change the invoice because they use an automated system.
FWIW I am VAT registered.

1. How can I get them to stop self-billing me?
2. What problems does the creation of two different invoices for the same piece of work cause?

[Fred Bloggs]

1 I have never found an agency who was able to withdraw self billing if they had it.

2 I make an invoice for the job but I don't send it. It helps to keep things straight to me.

[GillsMan]

1 I have never found an agency who was able to withdraw self billing if they had it.

2 I make an invoice for the job but I don't send it. It helps to keep things straight to me.

+1 - this is exactly what I do. In fact, for one of my clients, I wait until the agency generates the self-bill invoice, then I create my own invoice for my records.

1. What problems does the creation of two different invoices for the same piece of work cause?

None. Just don't do anything with the agency's self bill invoice. I don't even file it anywhere (though I save the email of course).

[openshac]

+1 - this is exactly what I do. In fact, for one of my clients, I wait until the agency generates the self-bill invoice, then I create my own invoice for my records.


None. Just don't do anything with the agency's self bill invoice. I don't even file it anywhere (though I save the email of course).

In the eyes of HMRC, does the agency's self bill invoice create a duplicate tax point?

[Fred Bloggs]

In the eyes of HMRC, does the agency's self bill invoice create a duplicate tax point?

IIRC, HMRC don't like you creating another invoice. But I guess you'd have to be pretty dumb to make them aware you were doing that, even in a home visit and I'd never agree to that anyway.

[malvolio]

In the eyes of HMRC, does the agency's self bill invoice create a duplicate tax point?

No, it creates the tax point since you won't be submitting yours for payment.

This whole issue is fundamentally wrong since it was never meant to apply to the continuing supply of services in the first place, (it was for repeat delivery of singe objects like car parts) but it's not going to change since it saves the agency lots of time and money.

In our defence there is also a requirement that our invoices are numbered sequentially, which the agencies' ones won't align with, so all we're doing is keeping our own records straight. If you want to be really super picky you can mark your invoice as "Paid by agency against invoice no nnnn", but there's really little point.

[SueEllen]

In the eyes of HMRC, does the agency's self bill invoice create a duplicate tax point?

You should only be showing one invoice.

Some agencies now allow you to enter your own numbering in their system the generated invoice will have two invoice numbers - yours and theirs.

As the only reason to duplicate an invoice is due to numbering then simply do the same. The date etc should be exactly the same so there is only one tax point.

I did have an agency years ago who expected their invoice numbering to be manually added to your invoice somewhere.

[openshac]

No, it creates the tax point since you won't be submitting yours for payment.

This whole issue is fundamentally wrong since it was never meant to apply to the continuing supply of services in the first place, (it was for repeat delivery of singe objects like car parts) but it's not going to change since it saves the agency lots of time and money.

In our defence there is also a requirement that our invoices are numbered sequentially, which the agencies' ones won't align with, so all we're doing is keeping our own records straight. If you want to be really super picky you can mark your invoice as "Paid by agency against invoice no nnnn", but there's really little point.

Why does the second invoice (the agency's self billing invoice) create the tax point? Their invoice is created and dated after I have submitted my invoice.

[Lance]

I send a copy of the invoice I create with the words.


"For your records can you please keep copies of this invoice in your files please?
This is in addition to the auto-generated invoice created by the time sheet system but it contains valuable information regarding services that have been delivered."

I don't care whether they file it or not but I've shifted the burden of record keeping to them.

[openshac]

I send a copy of the invoice I create with the words.


"For your records can you please keep copies of this invoice in your files please?
This is in addition to the auto-generated invoice created by the time sheet system but it contains valuable information regarding services that have been delivered."

I don't care whether they file it or not but I've shifted the burden of record keeping to them.

Does that actually guarantee that a duplicate tax point is not created?