What are self-billing invoices for self-employed staff?

During the payroll process, you are able to create self-billing invoices for your self-employed staff for the shifts they have worked with in any payroll batch.

This means that you don't need to wait for self-employed staff to send you the invoices for payment, instead they are created automatically upon running a payroll batch.

A self-billing arrangement is a formal agreement between a supplier and a customer. With regards to contracting, self-billing is agreed between a staffing or recruitment agency and a contractor’s limited company or umbrella company provider. The benefit of self-billing is that, as a contractor, they do not have to worry about generating invoices for their services and forwarding them to your agency (neither does your accountant – if invoicing is normally included in their service).

Instead, the contractor simply checks in and out of their shift (creating timesheets) and submits any rechargeable expenses via the staffarea. The agency will then both produce and pay the invoice. The invoice will include the contractor's name, company name, registered office address, and VAT registration number (if applicable). It is also mandatory by law that all self-billing invoices raised are marked with the reference ‘SELF-BILLING’.

This set-up is a legal arrangement and will be agreed by your limited company, or umbrella company provider, and your employer.