Self Billing
HMRC describe self billing as an arrangement between a customer and a supplier in which the customer prepares the suppliers invoice and sends a copy to the supplier with the payment details attached.
Most umbrella companies and recruitment agencies make use of self billing for contractors because they offer the following benefits:
- Reduces the amount of admin
- Makes the payment process more efficient
- Speeds up the payment process
- Makes the need for invoicing redundant
It should be noted that self billing is only used for contractors working through a limited company.
