Contracting through Hays
Everything you need to know about self-billing and how it works with Hays.
To speak to a member of our team, please contact us on 0203 727 2977.
What is self-billing?
Self-billing is an arrangement between a contractor (Supplier) and Hays (The Customer) whereby Hays prepares a contractor’s (supplier’s) invoice and sends it to the contractor (supplier) with payment. It means your Limited Company will no longer need to send an invoice to Hays’ Accounts Department along with your timesheet. You submit the timesheet and Hays sends you an invoice along with payment. Basically, it’s a more efficient payment process for contractors and Hays.
Self-billing has been operating for a number of years. It started with the automotive companies and is now widespread throughout industrial and service companies. Most of the large recruitment companies use self-billing.
What’s the benefit to me?
Self-billing is more efficient:
- You don’t have to produce an invoice
- It speeds up payment process and you get your money more quickly
- It reduces your administration
What are the benefits to Hays?
Self-billing benefits Hays as well as it reduces queries and we don't need to check invoices to timesheet.
Who makes the rules?
The scheme has no impact on the IR35 consideration. The rules are set out in VAT Notice 700/62. You can find this on http://www.hmrc.gov.uk/index.htm. Search ‘self-bill’.
Does self-billing impact on my IR35 position?
No, self-billing has no impact on your contractual or commercial arrangements between Hays and your Limited Company and has no impact on IR35 considerations.
Who designed the invoice format and layout?
The invoice format is a standard format that conforms to HMRC regulations and this cannot be changed.
How are the invoices numbered?
On creation of a contractor record, the contractor’s reference number (7 digits) is interfaced to the self-bill number reference and the numeric 00 is added to form a unique 9 digit number, which on production of a self-bill invoice increments by one. For example, for worker 1234567, the first invoice number will be 123456700, the next invoice will be 123456701 and so on.
When do the invoice numbers reset?
They do not reset. Each invoice number increments by 1 for each invoice produced
Can anyone use self-bill?
Self-bill is only used for contractors working through a Limited Company. It’s not relevant if you are a PAYE worker or student.
My self-bill Invoice is incorrect. Who do I contact?
It is unlikely that your self-bill invoice is incorrect as it is taken from the timesheet that you submitted and the client has authorised. However, if you have a query, please contact our call centre on 0203 727 2977.
Is the agreement with me or the Limited Company?
The agreement is between the Limited Company and Hays Specialist Recruitment Ltd.
The company has changed its VAT registration number. What do I need to do?
You need to send us a copy of the new Vat certificate and to contact your Hays consultant to sign a new PSCTOA agreement. Hays will supply your Limited Company with a new self-billing agreement with the new VAT registration number, which needs to be signed by an authorised representative and returned to Hays.
The Limited Company has changed its name. What do I need to do?
If the Company has changed its name BUT maintained the same VAT number, send us a copy of the change of name certificate issued by the Registrar of Companies. Please email this to email@example.com, quoting your name, date of birth and the old company name. You will also need to contact your Hays consultant to sign a new PSCTOA agreement form.
My system is set up to provide invoices. How will I cope with self-bill invoices?
Instead of providing your own invoices, you can use the self-bill invoices as part of your Limited Company’s accounting records. This is accepted by HMRC for VAT purposes. However, we recognise that you may have your own system to provide invoices. If you want to continue to do this, we suggest you produce your invoice but do not send it to us; instead attach it to the self-bill invoice.
I have signed a PSCTOA, but my Limited Company has not been paid this week and has not received an invoice.
Please contact 0203 727 2977 and they will help resolve any problems.
My company has just become VAT registered. Do I need to send Hays a copy of my VAT certificate?
Yes, you will need to send a copy of the new VAT registration document via email to firstname.lastname@example.org. You will also need to contact your Hays Consultant to sign a new PSCTOA agreement.
My company has now deregistered from VAT. What do I need to do?
Please email email@example.com advising the effective date of the change. You will also need to contact your Hays Consultant to sign a new PSCTOA agreement.
When will my self-bill agreement expire?
There is no expiry date. The self-bill agreement will continue until you cease to work through Hays. I don’t want to agree to the self-bill agreement. Can I continue to provide my own invoices on a weekly basis? Self-bill is our standard method and our systems are being changed to reflect this. Self-bill is more efficient, saves time and markedly reduces the possibility of late payment. You are not required to provide your own invoices for Hays to use.