What is a Self-Billing Invoice?

Self-Billing: Customer Issues the Invoice

In a self-billing arrangement, the customer generates the invoice to themselves for services you've provided. You don't issue an invoice; they do.

How It Works

1. You deliver goods/services
2. Customer generates their own invoice (to themselves)
3. Customer pays themselves based on that invoice
4. You receive payment

Common in retail, logistics, and large corporate supplier relationships.

HMRC Rules

• Written agreement required: Must have a formal self-billing agreement in place
• Duration: Maximum 12 months per agreement
• Must be documented: Keep copy of the agreement
• Valid for VAT: A customer-issued invoice is valid as a business record

Your Responsibilities

• Confirm delivery/completion of services to customer
• Ensure customer's invoice contains all required details (VAT number, description, amounts, etc.)
• Keep copies of self-issued invoices for 6 years
• Report income accurately to HMRC

FAQ

What if the customer's invoice has wrong VAT?

You're still liable if you agreed to self-billing. Query it immediately with them.

What if there's a dispute about what was supplied?

Having a written self-billing agreement and delivery confirmation protects you both.