Most major recruitment agencies engage in self-billing because it is a more efficient and standardized process for paying contractors. It can also speed up your payment process and reduce management in your business. You can only enter into a self-billing agreement if your provider agrees to place one. If you don`t agree with your supplier, your bills billed by yourself are not valid VAT bills – and you can`t get the UPstream VAT they represent. HMRC proposes the following model for a self-billing agreement. No, self-billing has no impact on your contractual or business agreements between Hays and your Limited Company and has no impact on IR35 considerations. Be careful not to consider self-charged invoices as purchase invoices and to recover VAT upstream. If you misrepresent VAT as an upstream tax, you must correct the error. To do this, you should provide your agency with the NUMBER and VAT identification certificate as soon as you have received it – and also tell them if your company will ever disconnect from VAT. You must then ensure that the Agency reissues all VAT payments from previous self-billed invoices they paid to your business, net of VAT. Your self-billing is unlikely to be incorrect because it is taken from the working time table that you have submitted and the client has authorized. However, if you have a request, please contact our call centre on 0203 727 2977. Normally, the VAT delivery date is the actual date on which goods or services are made available to you, to you, to the customer.
However, if you issue a self-billed invoice within 14 days of that delivery date, the date you charge will be fixed on the date of booking for VAT purposes. Instead, you simply transmit tables of working time and all rechargeable expenses via your recruitment agency`s online portal. The Agency will then produce and pay both the bill (or the final customer will be, depending on who is the payer). The invoice contains the name, company name, seat address and VAT identification number (if applicable). The law also requires that all self-billing invoices be marked with the “SELF-BILLING” reference. If an HMRC official wants to see the agreement, you have to show it to them. While the self-billing conditions dictated by the customer and the supplier, both must be aware of the compliance with specific VAT conditions. To do this, suppliers must take the following steps: You must send us a copy of the new VAT certificate and contact your Hays advisor to sign a new PSCTOA agreement.
Hays will submit to your limited company a new self-billing contract with the new VAT identification number, which must be signed by an authorized representative and returned to Hays. All self-billed invoices must include the list: “The VAT displayed is your VAT which is due to HMRC.” You cannot charge a supplier who has changed their VAT registration number until you have prepared a new self-billing agreement for them. You must set up a new agreement if your provider transfers its business as a current business and if you and the new owner want to continue self-billing. The self-billing Benefits Hays as well as it reduces requests and we don`t have to check the bills on the working time table. After the agreement is confirmed, customers now have long-term responsibility for invoices for each transaction until the contract expires. The self-billing count must contain the supplier`s name, address and VAT identification number.