Guide to Self-Billing (LCC)
When a business supplies goods or services to someone else who is VAT registered they will normally have to give them a VAT invoice. This sets out the details of the transaction and the amount of VAT charged. Without a valid VAT invoice, their customer can’t reclaim the VAT they have paid on their purchases. Usually, it’s the supplier who issues the VAT invoice, but in some circumstances the customer prepares the invoice instead and gives the supplier a copy. This system is called “self-billing”.
Self-billing is our preferred method of payment as it is more efficient, saves time, and reduces the possibility of late payment.
The rules and regulations regarding self-billing are laid out on the HM Revenue & Customs website. You can find these by going to www.hmrc.gov.uk and search “self-billing”.
Self-billing has no impact on an IR35 position, and no impact on any contractual or commercial arrangements between CTI Recruitment Ltd and yourself.
Your self-billing agreement will last for 12 months, or for the length of the contract, whichever is sooner. Once the agreement is due to expire, CTI Recruitment will automatically issue a new agreement to be completed and returned.
Should you wish to opt-in for self-billing, please
contact your recruitment consultant.
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