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Post Info TOPIC: Self billing help
daniel


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Self billing help
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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

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BackOfficeGroup


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Daniel

I'm confused. They raise the invoice for £1500 but only pay you £800, is that what you are saying?

P

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daniel


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Yes that is correct, i am sure this is wrong..

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BackOfficeGroup


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If they have raised the invoice for £1500, then they need to pay you £1500 or issue a credit note for the remainder.

I would query this otherwise you will be out of pocket as this VAT is your output VAT which you have to pay over to HMRC!!

P

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daniel


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yes thats what i thought however, i was also told that if you use cash accounting you only pay vat on the amount your paid..

But i end with invoices that dont match the payments.. So how do i account for that should they not issue debit notes

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BackOfficeGroup


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The treatment of VAT is one thing but has nothing to do with the query.

If they raise a self bill, why do they not pay you what the invoice states? That is the question and needs to be answered by them. Until then, your VAT will be wrong anyway, regardless of what method you use.

P

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daniel


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They pay on being paid themselves so we may earn say 1500 plus vat but they may only have been paid by the merchants say 800 plus vat.

Hence the diffrence, but i agree they should invoice for the amount paid and not the potential earnings.

Also it seems that they have not set up self billing correctly as we have never signed anything to agree to it...



-- Edited by daniel on Thursday 29th of July 2010 12:39:23 PM

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