What does a great invoice look like?

Hey! Free gent What does a great invoice look like? FreeAgent's Chief Accountant Emily Coltman gives you the ingredients for a successful invoice and then lists HMRC's requirements if your business is VAT-registered. Include your trading address, and don't forget the phone number in case the client has any questions. Use a unique, sequential invoice number. You could count up for Honey Bee Web Design Make sure the invoice design matches your company's brand, whether it's quirky and fun or simple and clean. The Hive (logo Cottage Lane Meadowland, BE1 2BE each new invoice (001,002, 003), or sequence by client or project (ClientA-O01, ProjectX-001). 01234 567890 Joe Cool INVOICE 024 Cooling Systems Ltd. Airy Place Cool Runnings FF1 4CR 27th June 2014 Payment: 7 days Payment due by 2nd July 2014 Tell your client when you expect them to pay - remember to discuss your Quantity Details Unit Price (E) Subtotal (€) nent terms Prototyping and design Web development 20:00 Hours 50.00 1,000.00 before starting work! Your quantity and description should be crystal-clear about what and how much you've 25:00 Hours 50.00 1,250.00 5:00 Hours Requirements gathering 50.00 250.00 GBP Total 2,500.00 delivered. Payment Details Payment Reference: 024 Make it super-simple for your client to pay you by including your bank details. In FreeAgent, you Here's the invoice as discussed - if you have any questions just let me know. Thanks! -Anna Use this space to add a friendly note, answer any potential questions that the client may have, and to give any other payment instructions. Company number 268382 Registered Address: Honey Bee Web Design, The Hive, Cottage Lane, Meadowland, BE1 2BE BACS Payment Account No: 12345678 can also adda link so your client Sort-Code: 12-34-56 can pay online! If you're a limited company or LLP, you need to show your Companies House registered number and address. And if you include the name of one director or member on your invoice, you must include the names of all directors or members! HMRC's VAT Requirements Are you VAT-registered? Here's what HMRC requires you to include on every invoice: Your name (or trading name) and address Your VAT registration number An invoice number which is unique and follows on from the number of the previous invoice (if you spoil or cancel a serially numbered invoice, you must keep it to show to a VAT officer at your next VAT inspection) The invoice date The time of supply, also known as the tax point. This is often the same as the invoice date if the work was delivered at the same time as the invoice. The customer's name (or trading name) and address A description sufficient to identify the goods or services supplied to the customer The rate of any cash discount The total amount of VAT charged, expressed in sterling For each different type of item listed on the invoice, you must show: The unit price or rate, excluding VAT The quantity of goods or the extent of the services The rate of VAT that applies to what's being sold The total amount payable, excluding VAT And if you issue a VAT invoice that includes zero-rated or exempt goods or services, you must: Show clearly that there is no VAT payable on those goods or services Show the total of those values separately If you make retail sales and you make a sale of goods or services for £250 or less (including VAT), you can issue a simplified VAT invoice. For more information, take a look at HMRC's guide at http://bit.ly/1iB8nsU. Need a way to manage those invoices? Check out freeagent.com/invoicing Disclaimer: Emily is a great accountant, but this infographic is not a substitute for advice from your own accountant, tailored to your own business. This information does not constitute accounting advice. 06 2014