Self Invoicing - what's that about?

**NickFitz** · 24 February 2010, 06:17

Lots about it at HMRC - you are in HMRC's terms "a supplier who has a customer that issues, or wants to issue, you with self-billed invoices (in other words, you are a self-billee)." If that page doesn't answer your questions, this Google search throws up lots more stuff about the minutiae.

Basically it just comes down to making things easier for the agency's accounting people, as well as saving you the trouble of raising an invoice - instead, you use the invoice they send you with payment.

I've worked through several agencies that operate self-invoicing in the past and it isn't a scam: it just lets them reduce their own overheads at no cost to you. Read through the HMRC stuff to satisfy yourself that they're doing everything by the book, and then enjoy the minute or so you'll save each week

**malvolio** · 24 February 2010, 08:15

But it's not an invoice, strictly speaking, it's a remiitance advice. Makes no practical difference, but being a bit of a pedant I raise my own invoice anyway - to check the numbers as much as anything - and file it. If nothing else it keeps my own books consistent.

Only thing to watch is VAT treatment on expenses. Some agenices have a nasty habit of deducting VAT paid from the expense claim and pocketing the difference.

**MarillionFan** · 24 February 2010, 08:42

Mmm. Like it.

Basically this is an efficiency drive. Remove an additional piece of paper/emails/process etc. Very nice.

If you think about it it, the next step is paperless invoicing. Within a Sales environment where you have huge numbers of customers/partners the process is automated completely, never generating paper. You go through a sign off process, fully automated EDI.

So get with the tweenies Grandad! If it makes you feel better, send them your timesheet and when they send you the payment, get your chalk & paint and paint it on the side of your cave.

HTH

MF

**Wanderer** · 24 February 2010, 09:39

OK, thanks for the reassurance guys. Looks like I'll go ahead with it and see how we go. Paperless - hmmm yes but to be fair I've never printed an invoice for my current company - they are just emailed so it's paperless anyway. The new system will involve them posting the invoice to me. That's progress I guess!

My main concern was that it makes the timesheet mandatory (when strictly it wasn't before) so if I can't get a timesheet signed then I can't get paid. Previously, I would sometimes raise an invoice and follow it with a timesheet when I could get it authorised and then demand that they pay the invoice on time without regard to the submission date for the timesheet.

**RichardCranium** · 24 February 2010, 12:26

Originally posted by malvolio View Post

But it's not an invoice, strictly speaking, it's a remiitance advice. Makes no practical difference, but being a bit of a pedant I raise my own invoice anyway - to check the numbers as much as anything - and file it. If nothing else it keeps my own books consistent.

I'm pretty sure you are wrong to do so.

I thought that under self-billing HMRC say you must not create an invoice. (Which does indeed bugger up both my processes and my record keeping).

**Clare@InTouch** · 24 February 2010, 12:40

Originally posted by RichardCranium View Post

I'm pretty sure you are wrong to do so.

I thought that under self-billing HMRC say you must not create an invoice. (Which does indeed bugger up both my processes and my record keeping).

I think it's the other way around - you should create an invoice for your own records. Should HMRC come knocking to investigate they will want to see your records, and that will include copies of invoices you've raised.

Self billing is to make the administration of the agent easier, it's not a replacement for your own.

**malvolio** · 24 February 2010, 12:51

Originally posted by *Clare* View Post

I think it's the other way around - you should create an invoice for your own records. Should HMRC come knocking to investigate they will want to see your records, and that will include copies of invoices you've raised.

Self billing is to make the administration of the agent easier, it's not a replacement for your own.

Agreed. The only requirement is that you don't send the invoice to the supplier, since they are paying on the delivery of the service , as evidenced by the timesheet (Actually it's all about speeding up JIT delivery in manufacturing originally, so think of how that works).

How I organise my business and provide audit trails is up to me. And I'm sticking to sequentially numbered invoices as prrof of money owed.

**TheFaQQer** · 24 February 2010, 13:37

Originally posted by RichardCranium View Post

I'm pretty sure you are wrong to do so.

I thought that under self-billing HMRC say you must not create an invoice. (Which does indeed bugger up both my processes and my record keeping).

WHS.

You should still get a copy of the invoice that has been raised by the client / agency - e.g. Parity used to email mine to me as a PDF each week.

Of course, that was back when I had a job.

**Fred Bloggs** · 24 February 2010, 17:58

Originally posted by malvolio View Post

But it's not an invoice, strictly speaking, it's a remiitance advice. Makes no practical difference, but being a bit of a pedant I raise my own invoice anyway - to check the numbers as much as anything - and file it. If nothing else it keeps my own books consistent.

Only thing to watch is VAT treatment on expenses. Some agenices have a nasty habit of deducting VAT paid from the expense claim and pocketing the difference.

+1. I do this too, if anything it keeps my books straight and shows that the agency is paying me what I reckon they should.

Self Invoicing - what's that about?