Self-billing has been operating for a number of years. It started with the automotive companies and is now widespread throughout service and industrial companies. Most of the large recruitment companies (Square One, Hays, etc.) use self-billing. Self-billing is an arrangement between a contractor’s Limited or Umbrella Company (Supplier) and their Customer (Catch Resource Management Ltd) whereby Catch prepares a contractor’s (supplier’s) invoice and sends it to the contractor (supplier). It means your Limited Company will no longer need to send an invoice to Catch. You submit the timesheet (and/ or expenses), it gets authorised by your manager and then Catch sends the invoice and follows it up with payment.
Basically, it’s a much more efficient payment process for everyone involved.
Self-billing is more efficient:
HM Revenue & Customers (HMRC). The rules are set out in VAT Notice 700/62. You can find this on the HMRC website. Search for ‘self-bill’.
Self-billing has no impact on your contractual or commercial arrangements between Catch and your Limited Company and has absolutely no impact on IR35 considerations.
The invoice format is a standard format that conforms to HMRC regulations and this cannot be changed. The invoice will show full timesheet detail (and expenses where applicable) and copies of the timesheet and expenses is attached.
Self-bill is only used for contractors working through a Limited Company. It’s not relevant if you are a PAYE worker or student.
The agreement is between the Limited Company and Catch Resource Management Ltd.
If your company has changed its VAT registration number or recently become registered you will need to send us a copy of the new VAT certificate, we will then provide you with a new Self-Billing agreement. Email the certificate to email@example.com
If the Company has changed its name BUT maintained the same VAT number, send us a copy of the change of name certificate issued by the Registrar of Companies. There is no need to sign a new Self Billing agreement. However if both the name AND the VAT number have changed you will also need a new Self Billing agreement. Email firstname.lastname@example.org to request a new form.
If your company de-registers then you will need to inform us and complete a new Self Billing agreement.
Instead of providing your own invoices, you can use the self-bill invoices as part of your Limited Company’s accounting records. This is accepted by HMRC for VAT purposes. However, we recognise that you may have your own system to provide invoices. If you want to continue to do this, we suggest you produce your invoice but do not send it to us; instead attach it to the self-bill invoice.
It will expire 1 year after you sign it, we will contact you to let you know when you need to sign a new agreement. The self-bill agreement will run alongside your Contract Schedule One.
As always, the contracts department will be happy to answer any queries that you may have. They can be contacted on 01202 589090 or email@example.com