Main contractors that self-bill their subcontractors can raise every invoice themselves — with the CIS domestic reverse charge and CIS deductions handled correctly — instead of chasing paperwork.
Under a written self-billing agreement, you (the contractor) prepare the invoice on the subcontractor’s behalf for the work they’ve done, apply the correct VAT treatment and CIS deduction, send them a copy, and pay them. The subcontractor doesn’t raise their own invoice for those supplies.
Since 1 March 2021 the CIS domestic reverse charge applies to most construction services between VAT-registered businesses: no VAT is charged on the invoice and you, the customer, account for the output tax to HMRC and reclaim it on the same return. Apex Billing supports the reverse charge at both 20% and 5%, and applies CIS deductions (commonly 20% for registered subcontractors, 30% unverified, 0% gross) to the labour element.
This is general information, not tax advice — confirm your own position with your accountant or HMRC.
Yes. Mark a subcontractor for the reverse charge and no VAT is added to the invoice — the required wording is shown and you account for the VAT on your own return. Both the 20% standard and 5% reduced rates are supported.
Yes. Set the deduction rate for the subcontractor and Apex Billing subtracts it from the labour element, showing the net amount payable.
No. You can create the subcontractor and raise and send their self-billed invoices with no involvement from them. They can optionally create a free account to view and download their invoices.
Raise your first compliant self-billed invoice today — free to start.