Invoice Information

[willow630]

Having just graduated from university I have started to Freelance. Just wondering what information I need to put on my invoice's to send into companies? Apart from the obvious; date, name, amount, job and UTR!

Also if anyone has a invoice template for me to look at that would be gratefully appreciated.

 

 

David

[Jevans]

Payment details. ;)

[Shez]

A unique invoice number so you can identify the payment when it lands in your account.

[p.k.roberts]

I include "XXXX understands and will exercise the statutory right to claim interest and compensation for debt recovery costs under the late payment legislation if payment is not made according to agreed credit terms."

[Jivemaster]

The wording of your invoice will tell lots about your employment status. check with your accountant about being certain that you give a self employed invoice if that's what you are.

[paulears]

I have NEVER put my UTR number on my invoices, and the invoice carries by business name, the one they make payments to, and the one HMRC and the banks know. In little letters at the bottom, it adds Paul Johnson trading as ........ I suspect that many clients who might worry about status with an invoice with P Johnson at the top, and the recipient of the money have less concerns when they can write a cheque to an 'entity', rather than a person - when as a sole trader, the entity is me!

 

You might be a great person, but you deal with accounts people who don't have a clue about what you did on the invoice.

 

I've noticed that a few organisations now ask for UTR as some kind of security question, but I'm not so sure of the wisdom of making it universally available in the public domain, like you NI number. It's unique to you, and could be provided on request. I don't see any need for it on an invoice.

Name, address, phone, web, job details, price, when due - that's about it.

 

 

The best advice I got was that if your invoice is mixed in with piles of others, for small to large amounts, it needs to not look out of place. Invoices tend to be quite random sizes, but do need to be laid out properly. I personally don't like A4 letter style invoices. I like boxes and perhaps a little shading relief to direct the eye to the important bit - for me, that's the total box.

 

Maybe we could share a few and see who has interesting ones? (and dull ones!)

[timsabre]

I include "XXXX understands and will exercise the statutory right to claim interest and compensation for debt recovery costs under the late payment legislation if payment is not made according to agreed credit terms."

 

This sounds nice but is pointless, terms and conditions on an invoice are unenforceable, you have to agree conditions like this at the point of creation of the contract (e.g. on the quote or when they place the "order" with you). To be completely watertight you have to get a copy of the t&c's signed by the customer.

 

I learned this the hard way when I tried to enforce a similar condition on one of my invoices which someone was refusing to pay...

[scjb]

This sounds nice but is pointless, terms and conditions on an invoice are unenforceable, you have to agree conditions like this at the point of creation of the contract (e.g. on the quote or when they place the "order" with you). To be completely watertight you have to get a copy of the t&c's signed by the customer.

 

I learned this the hard way when I tried to enforce a similar condition on one of my invoices which someone was refusing to pay...

 

Unless both parties mutually agree prior to invoicing (and also in the absence of any such agreement), the regulations state that a payment becomes late at 30 days after either the customer gets the invoice, or you deliver the goods or provide the service (if this is later). At that point you are entitled to invoice charges and interest at defined rates.

 

Linky

[timsabre]

This sounds nice but is pointless, terms and conditions on an invoice are unenforceable, you have to agree conditions like this at the point of creation of the contract (e.g. on the quote or when they place the "order" with you). To be completely watertight you have to get a copy of the t&c's signed by the customer.

Unless both parties mutually agree prior to invoicing (and also in the absence of any such agreement), the regulations state that a payment becomes late at 30 days after either the customer gets the invoice, or you deliver the goods or provide the service (if this is later). At that point you are entitled to invoice charges and interest at defined rates.

 

That's interesting - my bad experience was a number of years ago, I wonder how recent that law is because I was advised at the time that we had no chance of recovering interest or costs. Presumably you would have to go through the courts to actually obtain any money...

[David Lee]

1998, Late payments of debt act.

 

It is statutory and can be applied for without courts. You may need to use the small claims court to actually get them to pay if they refuse/ ignore the demand for payment but that is a separate thing.

 

As it is statutory you don't need to mention it on your invoice but it does no harm having it - my one does. It does not need to be negotiated beforehand - that would only be required if you T & Cs varied from the default as contained in the statute.

 

Only had to do it once as the debtor laughed when I asked him to pay up. I got paid and he lost his job. Guess who got the last laugh. (Obviously I knew beforehand that I would never work for that company again).

 

As a sole trader I put down UTR

 

Also on my invoice will be Job reference, purchase order, date of invoice, date of event, contact details, payment details and quick description of works carried out.

 

The wording of your invoice will tell lots about your employment status. check with your accountant about being certain that you give a self employed invoice if that's what you are.

 

Good advice. Some companies want a complete itemised invoice. You could land up being considered an employee by HMRC if you are not careful - I.e expenses, hourly/ daily rate. keep it simple I.e supply of technical services for...

 

Sample if this works...

[kerry davies]

Much the same as David though no threat, merely "Terms; 30 days" and I never put in my UTR details.

Never ever break down expenses to any more specific than "sundries", it covers a multitude of sins and doesn't have the red flag of "expenses" flying overhead.

 

I quite often spent significant amounts of my own money on VATable stuff like diesel for gennies and added that as a separate item with the receipts attached. Clients want to be able to claim that VAT back.

 

KISS is the general rule and don't hand hostages to fortune. The more detail, the more scope for interpretation and argument.

 

As for non-payments, then money claim online is your friend. It works a treat.

[David Lee]

Kerry, I always love threatening accountants :)

 

In reality it was a cut and paste from a website detailing info on late payments of debt. Rarely have to use it and wonder if anybody reads it in any case.

 

Like "sundries" must use it one day.

[paulears]

One thing I always do is include items on the invoice that I have supplied, but not charged for. X @£60, 10 gizmos @ £35 each etc etc - It comes in very useful when sometimes people query why you charge what you do - there is clear value in freebies that don't actually cost you anything.

[Yorkie]

https://www.gov.uk/invoicing-and-taking-payment-from-customers/invoices-what-they-must-include

 

One plumbing company I employed to carry out a few jobs at my house sent one without the following information

1) invoice number 2) how to pay 3) what currency it was in

 

number 2 was especially stupid, particularly as the invoice date was 6 days before the postmark, and the payment terms were 7 days

 

My invoices look something like this, I thought long and hard about it before I sent my first one and they seem to work fine for now. https://drive.google.com/open?id=0B6mQ3lvu1UE4b3N0RGlsYWJXVW8

 

Just realised that the garage that fixed my car today charged me for 1.0 Sundries

[paulears]

Here's one of mine if it helps.

example invoice