Self/Automatic billing

[Mr_Z]

My "agency" has just introduced this.
Contractor fills online timesheets in monthly, client signs and the company gets paid without invoicing.

I have a few concerns with the fact that after entering my hours (even though i get paid by the day) the timesheet application tot's up an amount that it refers to as my "weekly pay" - it's not, it's a B2B fee paid to my company. My "pay" is decided by the company.

Has anyone any experience with this or views? Do any of these issues or the fact that the company doesn't raise an invoice have any bearing on potential for IR35/deemed employment?

[Ardesco]

They should create an invoice for your company as well. You need an invoice for the audit trail (as do they).

I would suggest printing out your own invoices and keeping copies for your own records anyway. Useful if needed at a later date.

[kirk]

They should create an invoice for your company as well. You need an invoice for the audit trail (as do they).

I would suggest printing out your own invoices and keeping copies for your own records anyway. Useful if needed at a later date.

Exactly what I do

[gingerjedi]

I/my Co. have never been paid any other, way in my case a fill in each day as '1' rather than hours worked, the timesheet only refers days worked and has no mention of rate or pay, I'm surprised an agency would introduce a sheet that does.

They also send a hard copy and an emailed copy of the actual invoice every week.

[ASB]

You cannot be forced to use a self billing scheme. However it can be a condition of supply (which amounts to forcing you anyway ). What this doers mean is this cannot be forced on you mid contract unless you are prepared to accept it, because it is a contractural change.

There is quite a lot of info on the HMRC website which may help put your mind at rest (or not). There have been suggestions self billing may be viewed as an IR35 pointer (but I personally doubt it)

[Ardesco]

There have been suggestions self billing may be viewed as an IR35 pointer (but I personally doubt it)

Amazing what some people will try to class as an IR35 pointer. Lots of companies use self billing so if you are on it, it means nothing.

Not to mention self billing does not change the terms of your contract, or your work situation.

[ASB]

Not to mention self billing does not change the terms of your contract, or your work situation.

True, but I guess one could argue it does change the implied contract, which is what is judged - still can't see it making a jot of difference to overall status though.

[simes]

Never had a problem with it.

Alexman use it and it seems to be fine.

I do have my own invoices made up though and these are kept for audit purposes. No one has to know whether you've been self billed or not.

[malvolio]

I'm neutral on the subject, except that the two self-billing systems I have used have both screwed up my VAT. May not be a problem for FRS people, but if you're doing it the traditional way it could get expensive.

[ElectricChair]

Ive used it for a while - no issues