Self Invoicing

[Mustang]

I did get paid in the end and they understood my perspective and were happy with it. They agreed that self invoicing is not enforceable.

[malvolio]

It makes no difference at all to your IR35 status - so that's the good news.

Bad news is you will probably find you can't not use it (which is illegal, incidentally) and they will ignore any invoices you send them - but tell them you don't want to use it anyway and see what happens. I'd lay good odds you won't get paid.

Clause (d) means nothing by the way. If you aren't responsible for raising the invoice, how the hell can you observe a VAT tax point (which is the point in time at which you are stating the VAT will be applied on the invoice, just in case you didn't know). They want to raise them, then it's their problem to get the legailities right, not yours. But then, that's typical of their whole approach.

Be very careful about VAT treatment as well - if you have chargeable expenses, make sure the VAT bit doesn't disappear into CP's accounting system rather than your own.

Also, for future reference, do not use them again. Ever...

[Badgers Armpit]

I've read this thread & the one Mordac linked to with interest as it's just made the penny drop that I've signed up to CP's self billing. I recently signed a contract (& start soon) with the following wording in:

Self Billing System

1. The Company operates a self billing system which is approved by HM Revenue & Customs, which is subject to the following rules:

(a) The Contractor must not issue tax invoices in respect of services supplied; the Company only requires a record of work authorised by the Client.
(b) A tax invoice will be issued by the Company on the Contractor’s behalf detailing:
<stuff>
(d) The Contractor must comply with the normal tax point rules specified by H M Customs & Excise

I now realize I should have brought this up with CP. This is my first contract so hopefully I'll be savvier next time!

Anything I can do to make the situation more favourable with regards to IR35, being an independent supplier, etc? The wording would seem to state that I should not raise my own invoice . . .

[Asterix]

Don't let them

Self-billing has lately been an option for Ltd Cos, however I don't see the point of doing it. Why would you take away one of the few pleasures left, ie raising once a week/month an invoice for a hefty amount that you know is going to end up in a few days straight in your business account without anyone taking a slice, be it umbrellas or other 3rd parties. More to the point, if you word accordingly and specify the amount, you act as a normal business. Never heard of a client telling a supplier what he owes them, so why should we allow this ? Permies never have to lift a finger as they know exactly when and how much theyt're getting, is this what we want ?

[Mustang]

Mercy buckets, Mordac!!

[Mordac]

Mustang

Found that link - here

[Mordac]

The agency I am with has announced that in two weeks time I will not have to raise an invoice. Instead they will produce an invoice based on my project reporting sheet that I submit (varying frequency).

Does anyone see any HMRC related (or other) problems with this? Should I contest it?

Thanks for any feedback!

There was a good thread on this a few months ago, and iirc there were a few potential problems pointed out, one of which is that you are liable for any VAT errors on the invoice raised on your behalf. Self-billing systems cannot be compulsory (they will get a big bollocking from HMRC if they tell you otherwise) so perhaps the safest thing to do is opt out in writing and carry on as before.

[Lucifer Box]

Just continue to raise and send in your own invoice. Throw theirs in the bin on receipt (as no doubt they will do with yours) or just staple it to the back of your file copy of your invoice if you are feeling worried. As long as the amounts going into YourCo's account are the same as the amounts on your invoices, no one will give a damn. Your agent's internal procedures are of no concern or interest to you.

[TheMonkey]

I create my own invoices in Sage, file them and throw their e-timesheet ones out the window. Not had any problems yet.

[Mustang]

The agency I am with has announced that in two weeks time I will not have to raise an invoice. Instead they will produce an invoice based on my project reporting sheet that I submit (varying frequency).

Does anyone see any HMRC related (or other) problems with this? Should I contest it?

Thanks for any feedback!