Self-billing invoices

smnpukbmf · Jul 23, 2026

I use a group of freelancers who currently invoice me for their work and I pay them on receipt of their invoice.

I'm looking into creating self-billing invoices to make it easier all round. As far as I know I have to have them sign a simple self billing agreement that will last 12 months then I generate self-billing invoices in Xero and pay immediately.

I'm VAT registered but they are not so there's no VAT to consider.

Have I missed anything?

Cheers!

NelaKo · Jul 23, 2026

One thing to consider is payment records — make sure the self-billed invoice numbers and dates tie back clearly to the work completed, especially if you have several freelancers. I’d probably run it alongside the current process for a month just to make sure nobody’s payments or paperwork get missed.

TaxBix · Jul 23, 2026

One thing worth double checking: HMRC dropped the old rule that self-billing agreements need renewing every 12 months back in 2013, so it can run on and just be reviewed periodically rather than re-signed annually. The other bit people miss is confirming the supplier hasn't registered for VAT since the agreement started, since your self-billed invoices would need to change if they have.

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Self-billing invoices

smnpukbmf

NelaKo

TaxBix

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