Knowledge Centre

Welcome to the knowledge centre - where complex tax & accountancy law is turned into easy to read information.

Invoicing

You have to issue an invoice to your clients for the services you provide to them. This must contain certain information.

The Basics

Legally, an invoice must contain:

1.  Business name and address

2.  VAT number (if registered)

3.  Invoice date (the date you create the invoice not necessarily the date you did the work)

4.  Invoice number - this should be a consecutive number, i.e. #0001 then #0002.

5.  Itemised breakdown showing the fee and VAT separately and then the total invoice cost.

Expenses

Many people invoice their client for expenses incurred such as travelling to site etc. If you do this and are registered for VAT then you need to add VAT on top of what you are charging - even if the expense does not include any VAT when you pay for it i.e. a train ticket has no VAT but if you expense this to a client you must add VAT on top (only if you are VAT registered).

Self-Billing

If you work through an agency it is most likely that they run their own self-billing procedures – this will generate an invoice for you, so there is no need for you to issue one.


The 123 Way will provide you with a template invoice for you to customise and send to your clients.

Disclaimer:

This information is for general information only. We take no responsibility for any action taken or refrained from in consequence of its contents. Always seek our professional advice specific to your circumstances before acting.