Self billing

[chicane]

I've just got the paperwork through for a new contract due to start in a couple of weeks. The agency's payment process describes "self-billing", where I submit timesheets and the agency invoices on my behalf, writing invoices as they were issued by my company. This means that my company gets paid without issuing an invoice.

Has anybody come across this before? Will I need to create invoices that match the amount my company gets paid without actually sending them to the agency? I can't quite get my head around it.

[Kyajae]

I've just got the paperwork through for a new contract due to start in a couple of weeks. The agency's payment process describes "self-billing", where I submit timesheets and the agency invoices on my behalf, writing invoices as they were issued by my company. This means that my company gets paid without issuing an invoice.

Has anybody come across this before? Will I need to create invoices that match the amount my company gets paid without actually sending them to the agency? I can't quite get my head around it.

NO NO NO! Do your own invoices with your timesheet. Ever heard of IR35?

[Old Greg]

My agency says they do the same thing, but that's none of my business. I send my own invoice in anyway and that's my record (and when they've got things wrong, I've been more in control of getting it right). If they pay your Ltd incorrectly are they going to send themselves credit notes and reinvoice on your behalf? And are you going to trust them to get it right?

[dmini]

The experts views on Shout99 etc say self-billing is not an IR35 issue.
However, producing the invoices anyway is still useful - consistency, paper traces etc.

[chicane]

The conditions of the billing agreement (that I have to sign) require that I don't send any invoices to the agency. I'm bemused by this whole self-billing lark and can't help but wonder about their motivation for doing things this way.

I think I'll give them a call.

In the meantime, any other opinions?

[Kyajae]

The experts on Shout99

This is a complete contradiction in terms (also known as an oxymoron)

[Vito]

Who is paying you? Whomever that is, thats who you invoice...that is how business works and it is the only way a business can work.

[chicane]

Who is paying you? Whomever that is, thats who you invoice...that is how business works and it is the only way a business can work.

By the looks of it, the agency raises invoices on my company's behalf as if produced by my company (ie they appear to originate from my company address, have my company's reg no and vat no etc). However, the agency does not appear to disclose in this agreement to whom the invoices will be addressed.

Which leaves me with something of a problem if I wish to produce my own invoices, as I won't know who to address them to.

[PrinceNamor]

my agency recently tried to get me to convert to their self billing system. I refused, I can't see how any real business would allow someone to produce invoices on their behalf. It also adds an extra layer of complexity to the billing process that doesn't need to be there. I have my own invoicing system which has worked perfectly fine up to now so I'm not going to change it.

[dmini]

Who is paying you? Whomever that is, thats who you invoice...that is how business works and it is the only way a business can work.

Lots of businees work without producing invoices generally - small shops, taxi drivers - just off the top of my head

Kyajae- if you are saying that the senior partners in Bauer & Cottrell are not experts in IR35 - fine. Or QDOS? Its not a viewpoint I would take up with them, as many of us use their IR35 services.