Self-billing is an arrangement between a supplier (your PSC) and a customer (your agency or client). Both customer and supplier must be VAT registered.
The customer prepares the supplier’s invoice and forwards a copy to the supplier with the payment.
If you want to put a self-billing arrangement in place you do not have to tell HMRC or get approval from them, but you do have to:
- get your supplier or customer to agree to the arrangement
- meet certain conditions