What Is Self-Billing?
Self-bill/ self-billing is an arrangement between a contractor (Supplier) and Spectrum IT Recruitment (Customer) whereby Spectrum IT Recruitment prepares a contractor’s (Supplier’s) 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.
Guidelines: We follow the HMRC rules set out in 'VAT Notice 700/62'. For more information search 'self-bill' on their website: http://www.hmrc.gov.uk.
- No need to produce and send invoices
- It speeds up your payment process
- It reduces the risk of invoice errors
- No risk of invoices being undelivered by email
Who Can Agree To Self-Bill?
Self-billing is now available to all of our contractors, free of charge. Please request a Self-Bill Agreement 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?
No. Self-billing has no impact on your contractual or commercial agreement between Spectrum IT Recruitment and your Limited company. 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.
Invoices follow a standard format that conforms to HMRC regulations and cannot be changed.
Instead of producing your own invoices as part of your Limited company accounting records, you can use the self-bill invoices. This is accepted by HMRC for VAT purposes. If your system automatically generates invoices, you can continue to do this but not send them to us. Instead, attach your invoice to the self-bill invoice.