Self-Billing

Self-billing is a commercial arrangement between a supplier and a customer in which the customer prepares the supplier's invoice, and forwards a copy to the supplier with the payment.

For full details see Self-billing (VAT Notice 700/62) on the HMRC website: http://www.hmrc.gov.uk.

If a self-bill arrangement is in place, Spectrum IT Recruitment (Customer) prepares a contractor’s (Supplier) invoice on their behalf. We use the information from your approved timesheets to automatically generate your invoices for us to pay. We also email you a copy of this invoice for your records.

The Benefits

• No need to produce and send invoices
• It speeds up your payment process
• It reduces the risk of invoice errors

Who can agree to Self-Bill?

Self-billing is available to all contractors, free of charge. Please request a Self-Bill Agreement. This needs to be signed by a representative of the Limited company you are contracting through. If you are contracting through an Umbrella company, they will sign this document. Once signed, we will do the rest.

Does this impact my IR35 position?

It has no impact on IR35 considerations.

Am I obligated to Self-Bill?

No, however, our systems are set up to self-bill so contractors benefit from being included in this efficient payment process. Your Personal Service Company can choose to submit an invoice for payment, if you prefer.

Invoices

Invoices follow a standard format that comply with HMRC requirements and cannot be changed.

Accounting

Self-bill invoices are accepted by HMRC for VAT purposes. If your Personal Service Company's accounting system automatically generates sales invoices, you do not send them to us. Instead, attach your invoice to the self-bill invoice and retain for your records.