Self billing help

[Daniel Toms]

Hi
I wonder if anyone can help? I get the majority of my income from affiliate marketing, however one network i work with is sending out self billing invoices for one amount but paying a lesser amount.

So for example i will get a self billing invoice for say £1500 plus vat but will get credited with just £800 plus vat. (they pay when they get paid - So the invoice they issue is what i have earned.)

The question is should they not issue a debit note to cover the missing amount or should i issue my own invoice for the diffrence.

There is some issue as whether they have set up self billing correctly

Regards

Daniel

[Williams lester]

If they are paying you less that the invoice value then the balance will become a debtor in your accounts.

[Daniel Toms]

If they are paying you less that the invoice value then the balance will become a debtor in your accounts.


I have spoken to hmrc who say they should issue a debit note, to cover the difference otherwise i am paying vat before i have been paid.

THE VAT SHOWN IS YOUR OUTPUT TAX DUE TO CUSTOMS & EXCISE

But more importantly they should invoice for the amount they are paying in the first place.

Is this correct?

Daniel

[Williams lester]

I have spoke to hmrc who say they should issue a debit note, to cover the difference otherwise i am paying vat before i have been paid.

Unless you are on VAT cash accounting, in which case you only pay VAT on the money you receive.

[Daniel Toms]

Unless you are on VAT cash accounting, in which case you only pay VAT on the money you receive.

I see thank you, but i seem to have self billed invoices that show amounts consistently less than i have been paid, do i raise my own invoice back to cover the diffrence..

Or should they issue the debit notes.

Lets say i earn £1500 in commissions this month but as the network only pays when they have been paid, they still issue a self billing invoice for £1500 plus vat at the end of the month.

Yet they may pay only say £400 plus vat so that leaves £1100 plus vat short fall.

Daniel

[Williams lester]

But eventually you will get paid the difference (when they get paid) and this will reduce the debtor in your books. If this is unclear, you should really ask your accountant.