Reply to: Self billing question

[EvilWeevil]

For admin, it's useful. For IR35 it's irrelevant. For accounting purposes though, it's a PITA and you find yourself raising dummy invoices to keep the audit trail straight. And many of them seem not to understand VAT very well either.

I don't think it's the selfbills or the invoices that understand VAT; it's the agency itself. It seems to me that self-billing is generally a way to get money into your company quicker. Which is good. And the rest of the variances are down to individual agencies.

[malvolio]

Wrong person quoted Mal

Oh yes... Oops..

[FiveTimes]

Wrong person quoted Mal

[malvolio]

To answer the original point, self billing is just a method of reducing paperwork (from my understanding).

Actually, no. It is a legalisation that allows a supplier to deliver invoice and get paid via EDI in a paper-free environment and was designed primarily for Just-in-Time manufacturing and supply chains and not as a way for agencies to cut down on their clerical support. Which is why the official guidelines and Ts&Cs allow one side or the other to impose it unilaterally as a condition of doing business; obviously a one-way EDI system won't work.

Equally the delivery triggers the payment in a self billing arrangement - so think about it, why do you need a timesheet signed by a third party to complete the transaction?

[pmeswani]

I just submit a timesheet, no need to send invoice. The timesheet is submitted on Monday morning, and Friday the payment is in and cleared. There is also the paper work at home on Friday.

Great system and really easy. Maybe different agencies operate different

The Agency that got me the job insists on an invoice and a timesheet. I don't mind either way, doesn't take long to do. I fax my timesheet over to the agency, and update the online portal for the PSC to raise the invoice. At least I get a record of when the invoice has been sent from the PSC (I manually enter it into my Accounting package for reference) and a copy of the timesheet and get paid about a week later. However, the agency that the client employs enforces self-billing. Typical man-in-the-middle type of employment.

To answer the original point, self billing is just a method of reducing paperwork (from my understanding).

[FiveTimes]

I self bill, do manual timesheets and send invoices (via the PSC). No problems so far. I self billed in my last contract... again no problems.

I just submit a timesheet, no need to send invoice. The timesheet is submitted on Monday morning, and Friday the payment is in and cleared. There is also the paper work at home on Friday.

Great system and really easy. Maybe different agencies operate different

[pmeswani]

I self bill and there I haven't had a problem with any of it.

I self bill, do manual timesheets and send invoices (via the PSC). No problems so far. I self billed in my last contract... again no problems.

[FiveTimes]

I self bill and there I haven't had a problem with any of it.

[ratewhore]

Don't like 'em so never used 'em. Never been a problem with any agency trying to get me to use them either. They were happy enough for me to submit my own invoices...

[Lewis]

Or am I being too picky here.

Nope! My self billing invoices were a nightmare. Wrong rate, double correction, never sent copy of invoice etc..

I demanded to be taken off and then was magically re-added and once again mistakes were made. In the end I said take me off or I leave this contract and since then everything has been fine.

[Sockpuppet]

Badeonch & Clark used self billing.

I just raised dummy invoices. They also seemed to get the expenses spot on.

Invoice by Friday, paid by Wednesday every time and right each time. Never had an issue.

[skelm]

For admin, it's useful. For IR35 it's irrelevant. For accounting purposes though, it's a PITA and you find yourself raising dummy invoices to keep the audit trail straight. And many of them seem not to understand VAT very well either.

Avoid if you can but it's not the end of the world if you can't.

Thanks Mal. Its being insisted upon ... and they are saying that they will send me payment notification detailing what has been paid and what the VAT component is etc.

My slight concern is that if they do get something wrong in the amounts ( VAT or amount chargeable ), how do they do about correcting it? Seeing that I am not supposed to send them invoices, do they issue credit note to themselves and then re-invoice?

Or am I being too picky here.

[malvolio]

For admin, it's useful. For IR35 it's irrelevant. For accounting purposes though, it's a PITA and you find yourself raising dummy invoices to keep the audit trail straight. And many of them seem not to understand VAT very well either.

Avoid if you can but it's not the end of the world if you can't.

[AlanR]

Self Billing

Hi,

I use self billing with one of my clients and it makes life a little easier.

Basically, i submit weekly timesheets through their portal which are then authorised by my manager. At the end of a monthly timesheet period and providing all the associated time sheets have been authorised, i am paid without the need to submit an Invoice.

I am provided with paperwork to support my submissions namely a Self Bill proforma listing my weekly timesheets and the hours booked and then, once payment has been authorised, a Remittance Note which identifies the amount to be paid into my bank account.

It is this Remittance note that contains details of the VAT element.

I still create and print off an Invoice for my own records.

Hope this helps.

Regards

Alan

[oracleslave]

Have a look here fwiw

http://forums.contractoruk.com/busin...f-billing.html