Self billing

[laney]

Hello - I've recently got my VAT registration through and am having problems getting the VAT I'm owed from my agency. I've sent two VAT-only invoices to cover this but they've now come back to me to say that I need to sign a self-billing agreement...

We have received your new VAT registration confirmation for your Limited Company.

In light of this matter we will need to follow the rules as set out in HMRC VAT Notice 700/62 and forward you a new Self Billing Agreement. This needs to be responded to by e-mail and a signed copy returned to us. The Agreement will be set up on receipt of your acceptance.
I would also like to inform you, that you would need an invoice to cover VAT for the period prior and including your recent Self Billing Agreement. This will need to be sent to your Consultant, to arrange with our payroll department any back dated VAT you require.

According to the sgency this means I no longer need to produce an invoice but this is fine with IR35....is this correct? I thought a limited company should always produce their own invoice - can they refuse to recognise my VAT reg if I don't sign up to self-billing, isn't that illegal? Or am I making a big fuss about nothing at all?

Thanks
Laney

[WindyAnna]

Lots of companies self-bill, for all sorts of services and products - not just IT services so I am assuming it is irrelevant to IR35 - but I could be wrong. I have implemented systems which self-bill on positive POD of goods for example.

Why you would have to sign the self billing agreement to get a VAT only invoice paid is beyond me?!

Hopefully someone far more informed than I can help. My info is only from implementating billing and accounting systems so may be totally different for agences/IT services ... but I can't see why.

WA

[Ardesco]

You don't have to go across to self billing if you don't want to the invoices that you have sent are valid. Looks like they are using it as an excuse to try and move you across. I suggest calling your accounts department and telling them this and if they still have problems tell them you will call the VAT office to get clarification from them. That should speed things up.

[laney]

Thanks for the help guys.....I'll give them a ring on Monday

[Dark Black]

Timely thread - My company has also finally completed VAT registration, I invoiced for the outstanding VAT and the agency paid up with no probs. However last week I received a similar self billing email request complete with a self billing agreement to sign. As I prefer to invoice I simply replied by email that to that effect. I've not heard anything back so I assume they (the agency) are happy to continue being invoiced.

[vhadiant]

Can someone please enlighten a newbie, what is Self Billing?

[Ardesco]

You fill in an online timesheet and then thier "portal" creates an invoice for you which is sent accross to thier accoutns department to be paid.

Basically it is a labour saving device for them. They don't have to type in how many hors you have worked and how much you need to be paid as you do it all for them. Probably linked into the billing system as well so that they just need to click approve and they have processed your invoice.

[Swamp Thing]

You don't have to self-bill if you don't want to, and the agency should have made this option clear to you from the beginning.

I have been given the same request and declined. Until I am satisfied there are no HMRC issues (and I'm not yet), then I will continue to invoice in the traditional time-honoured fashion.

[malvolio]

You don't have to self-bill if you don't want to, and the agency should have made this option clear to you from the beginning.

I have been given the same request and declined. Until I am satisfied there are no HMRC issues (and I'm not yet), then I will continue to invoice in the traditional time-honoured fashion.

No you don't. Snag is, one side may make it a condition of trade, then you're stuffed...