Self Billing in Contract

[SimonMac]

Got my latest extension through and they have said there are some changes to reflect the new privacy policy. So I thought it would be a good time to actually read the new contract, there is one thing that surprises me:

The self-billee (Contractor) agrees:
1. To accept invoices raised by the self-biller on their behalf until __/__/____ (insert either an end date for the agreement or the date your contract ends).
2. Not to raise sales invoices for the transactions covered by this agreement
3. To notify the customer immediately if they
•

• Change their VAT registration number
• • Cease to be VAT registered, or
• • Sell their business or part of their business

The "Not to raise sales invoices for the transactions covered by this agreement" has me wary, I use Freeagent so it creates an invoice for me. Might have to have a word with the pimp as to why they have added this.

[malvolio]

Been answered before. Keep your own invoicing system just don't send a copy to the agency, and treat their invoice (which it isn't, but hey...) as a remittance advice.

And always check the two match.

[northernladuk]

Got my latest extension through and they have said there are some changes to reflect the new privacy policy. So I thought it would be a good time to actually read the new contract, there is one thing that surprises me:

You put that in just to get a rise from me?

The "Not to raise sales invoices for the transactions covered by this agreement" has me wary, I use Freeagent so it creates an invoice for me. Might have to have a word with the pimp as to why they have added this.

Nothing to worry about. It means against the agent. They are probably so incompetent if you send one in they'd pay it so they are asking you not to. You raising them in Freeagent is just to keep your books right, nothing to do with payment and the contract.

[SimonMac]

Been answered before. Keep your own invoicing system just don't send a copy to the agency, and treat their invoice (which it isn't, but hey...) as a remittance advice.

And always check the two match.

That is what I have been doing, and will continue to do so, just struck me as curious that they make this an explicit clause in my contract.

[SimonMac]

You put that in just to get a rise from me?

Depends, are you going to see if I've asked my accountant?

Nothing to worry about. It means against the agent. They are probably so incompetent if you send one in they'd pay it so they are asking you not to. You raising them in Freeagent is just to keep your books right, nothing to do with payment and the contract.

In all the realms of possibilities, I didn't even think they would need to protect against being so stupid they pay the same invoice twice, then I remembered we are dealing with agents!

[TheCyclingProgrammer]

The "Not to raise sales invoices for the transactions covered by this agreement" has me wary, I use Freeagent so it creates an invoice for me. Might have to have a word with the pimp as to why they have added this.

Raising an invoice = creating an invoice and sending it.

Creating a dummy invoice in FreeAgent to correctly account for sales and not sending it - none of the agent's business.

[northernladuk]

Depends, are you going to see if I've asked my accountant?

I know better and ain't falling for that one you little tinker. A search might have been in order but Mal beat me to it

In all the realms of possibilities, I didn't even think they would need to protect against being so stupid they pay the same invoice twice, then I remembered we are dealing with agents!

Very true but you'd think their incompetence would stop short of giving their hard earned money away.

[LondonManc]

I know better and ain't falling for that one you little tinker. A search might have been in order but Mal beat me to it



Very true but you'd think their incompetence would stop short of giving their hard earned money away.

As long as the agent gets his cut, he's not bothered about the agency itself.

[cloudcontractor]

I've actually asked my accountant about this and I'm awaiting the reply on how to properly record self-bill invoices (using Xero in my case). I've been warned not to create my own invoice as this would represent a duplicate tax point:

https://www.gov.uk/guidance/self-bil...illed-supplies

Obviously I need some kind of 'construct' within my accounting system to deal with the customer-raised bill, but don't wish to foul up my official record in any manner that could leave me exposed. Searching around it seems like these flashy online accounting packages don't have an official solution for it as the advice I'm seeing is all workarounds.

[LondonManc]

I've actually asked my accountant about this and I'm awaiting the reply on how to properly record self-bill invoices (using Xero in my case). I've been warned not to create my own invoice as this would represent a duplicate tax point:

https://www.gov.uk/guidance/self-bil...illed-supplies

Obviously I need some kind of 'construct' within my accounting system to deal with the customer-raised bill, but don't wish to foul up my official record in any manner that could leave me exposed. Searching around it seems like these flashy online accounting packages don't have an official solution for it as the advice I'm seeing is all workarounds.

Ah, so there are merits to the Dolan-Excel model after all?