The weekly contractor invoice
Self-billing software for UK depots with a self-employed workforce
Self-billing software for UK depots with a self-employed workforce. Raise the contractor invoice, apply the rate card, and keep the self-billing agreement and invoice PDF each week. The depot does not wait for each driver to send their own invoice. A self-billing agreement has to be in place first. HMRC sets that rule. Zerity stores the agreement and the invoice.
Free for operators
What a self-billing agreement must contain
HMRC VAT Notice 700/62 says you can only issue self-billed VAT invoices to a supplier you have a self-billing agreement with, and the agreement must be in place first. The notice and the VAT regulations require the supplier to agree that you raise the invoices, that they will not raise their own VAT invoices for the same supplies, and that they will tell you if they stop being VAT registered or change VAT number. The agreement needs a start date and an expiry date, and the expiry can follow the contract term. HMRC advises reviewing agreements every 12 months.
Zerity stores the signed self-billing agreement on the driver file and produces the invoice from the rate and the days worked. You still follow the notice. Storing the PDF does not, by itself, make the arrangement valid.
A driver who is not VAT registered cannot be the supplier on a VAT self-bill. Record each driver's VAT position and follow the notice for the drivers who are registered. The wider notes are on the HMRC guides, the HMRC self-billing guide, Self-billing for subcontractor pay runs (UK), and self-billing software.
One pay week, two VAT positions
The days come from the driver rota. The driver and the agreement come from driver onboarding.
| Line | VAT-registered driver | Driver who is not VAT registered |
|---|---|---|
| Rate | Day rate from the rate card | Day rate from the rate card |
| Days | Days worked on the rota | Days worked on the rota |
| Deduction | Only a deduction you have agreed | Only a deduction you have agreed |
| VAT | Shown when the driver is registered and the agreement allows a VAT invoice | Not a VAT self-bill |
| Record | PDF kept for both sides, and available to download | PDF kept for both sides, and available to download |
A live pay run does not switch over in a day. Dated Go-Live for live pay Fridays. The platform price is on the pricing page: Free for operators.
Self-billing questions
HMRC, customer invoicing, and moving a live pay run.
It is the system that raises the driver invoice for them, from the agreed rate and the days worked, and keeps the PDF. The depot does not wait for each driver to send their own invoice.
Zerity keeps the self-billing agreement, the invoice and the record. You still follow HMRC VAT Notice 700/62, including a valid agreement and the right VAT treatment for each driver. The software does not make the arrangement compliant on its own.
No. Customer invoicing software usually bills your customer for the job. This page is the self-bill you raise for the subcontractor driver.
A live pay run does not switch over in a day. Dated Go-Live for live pay Fridays.
Invoices and pay records can be downloaded for your bookkeeper. Ask on the demo about the accounts package you use.
Raise the contractor invoice from the week worked
Self-billing software, the self-billing agreement, and the PDF. Free for operators.
A live pay run does not switch over in a day