What is self bill invoicing?
What is self bill invoicing?
With many supply chains being driven by some very slick IT systems, there can still often be delays in payments (a rather key part of any business relationship) due to errors with invoicing.
One of the simplest ways to avoid this issue is through self-billing. Simply put, self-billing allows the service/product recipient to raise the invoice on behalf of the provider, rather than the other way round. It is unlikely in this situation, therefore, that the party due to pay the invoice can moan about it being incorrect, as they will be the party who raised it!
An example of where self-billing works perfectly is in the recruitment market, specifically, contract recruitment. If an online timesheet system is fully integrated with invoicing, and invoices are generated based on approved timesheets and pay rates contained within that system, then perfectly correct and timely invoices can be raised at the click of a button.
There is nothing worse for a contractor than to find there is a delay in payment to them because their invoice does not tally with the timesheets that have been approved.
Can one company raise invoices on behalf of another?
Yes, as long as a self-billing agreement has been signed. This is a requirement of HMRC and is a very simple and straight forward document.
GSA have self-bill agreements in place for over 99% of our contractors ensuring payroll is both accurate and prompt. For more information on self-billing, please visit the HMRC guide here, or GSA’s guide here
