Invoice Information

[gyro_gearloose]

Paul, you might want to change your currency to one actually that exists! There's only one 'I' in Sterling. :)

 

Sorry to be a bit pedantic, but if it's any help I did have to google the correct spelling :)

[paulears]

bums - been there for years and I never noticed! Thanks!

[TonyMitchell]

@David - some companies may require a purchase order or job number to be quoted on your invoice. Where there is a formal ordering process in place, typically you will receive a PO document stating the goods/serviced ordered and agreed prices.

[Biskit]

I'm surprised some of you guys add additional lines for things like travel and subsistence, I'd have thought this would be classic 'alarm bells' stuff for HMRC? My invoices are similar to those shown, and 90% of them have only one single line, something like "supply, setup and operation of PA system for XXX event". My expenses for fuel, food, and small disposable items such as tape, cable ties, batteries etc are included in the total price, agreed beforehand. Obviously I have a formula for working out my fee, ie. equipment hire + time + travel + expenses +/- "how much I like the job factor", but I don't share that with my client.

 

I've always worked on the basis that a key point of distinction between employment and contracting (self employment) is that in the former case, I have to be there in person at the times determined by the employer, whereas in the latter case, I can be there when I like (providing I actually provide the required service) and I could even send a substitute or bring extra help, at my discretion. Itemising personal items such as travel and subsistence surely suggest the arrangement is more 'employee' than 'contractor'?

 

The only times I have multiple lines on an invoice is where 1. I am putting multiple jobs on one invoice, and 2. if I am charging for large sale items as 'extras'.

[paulears]

No - absolutely the opposite for me. Ever seen a plumber or a car mechanic not charge for the extras, over and on-top of the job price. In most cases, things that were not part of the price for the job. So if I spend fifteen quid on tape that I hadn't planned on, then that's twenty quid on the invoice. Same thing with subsistence - for me, always on top - and on my longer term contracts, subsistence is always separate on the contract terms the production companies offer - mainly, I suspect, because they want them separate for their own accounts department - so it's price for the job £X subsistence @ £X per week.

 

HMRC have an agreed and established rate for mileage, so having that on the invoice is another clear separation between components. If a production company allows me food, then it's on the invoice. I've done this for quite a while, and had my accounts inspected too - didn't cause any HMRC issues.

 

I'm a bit mystified why you keep the calculation you use private from the client - if they see the breakdown, I've always found it helps, rather than hinders, because it makes you look cheaper - and the hundred quid for fuel is fully understood when it's displayed with the actual mileage.

 

On my invoices there can be multiple people, multiple miles and multiple out of pocket costs, which I expect the client to pick up. I'm often doing a kind of buy and sell, so I also get similar invoices from the people I use. These then get entered onto my invoice, so their claim for £25 for food is then invoiced out by me. Seems to work for me and my accountant?

[Biskit]

I suspect the types of jobs we do differ. It's rare that any of the jobs I do incur any extras, however where I'm asked to do/provide extras over and above the agreed price, then these do of course go on as separate lines (generally sale items). It's also quite rare that my jobs take me further afield to the extent that I'll be charging for mileage, or having to take meals or stay in hotels, I just don't tend to go for this kind of job. I suppose another reason for not disclosing the formula on which I price for a job, is that I do put quite a bit of weight on the "how much I want to do the job factor" and admittedly I'm fortunate in being able to do so. I find that many clients are looking at quality of job based on recommendation and references, rather than simply 'the best price' so again I don't find justifying my fee by breaking it down is required. I guess it shows there is quite a range of requirements and expectations in the industry.

[David Liu]

All payment info. If possible try touble entry bookkeeping. This will help you detecting errors. Or you can try a lightweight online accounting services like ZipBooks. Or if you are very good at excel formulas then you can do it without any software. I am not so expert that's why I am using software.