Self-Billing
What is Self-Billing?
Self-billing is a commercial arrangement where the customer prepares the supplier’s invoice and forwards a copy to the supplier along with the payment.
For complete details, refer to Self-billing (VAT Notice 700/62) on the HMRC website: HMRC Self-billing Notice.
Under this arrangement, Deep Dive Hire (the Customer) will prepare invoices on behalf of contractors (the Suppliers). We use information from your approved timesheets to automatically generate these invoices, which we will then pay. A copy of each invoice will also be sent to you for your records.
The Benefits
>Eliminate the need to produce and send invoices.
>Accelerate your payment process.
>Minimise the risk of invoice errors.
Who can agree to Self-Bill?
Self-billing is provided to all contractors at no extra charge. To initiate this process, please request a Self-Bill Agreement. This agreement must be signed by a representative of your contracting Limited company. If you are operating through an Umbrella company, they will complete the signing. Upon receipt of the signed agreement, we will manage the remainder of the process efficiently.
Does this impact my IR35 position?
It has no impact on IR35 considerations.
Am I obligated to Self-Bill?
No, our systems are designed for self-billing, ensuring contractors benefit from a streamlined payment process. However, if you prefer, your Personal Service Company can still choose to submit an invoice for payment.
Invoices
Invoices adhere to a standard format that complies with HMRC requirements and cannot be modified.
Accounting
Self-bill invoices are fully compliant with HMRC requirements for VAT purposes. If your Personal Service Company’s accounting system generates sales invoices, you are not required to submit these to us. Instead, please attach your sales invoice to the self-bill invoice and retain both for your records.