We use a local firm of accountants, where we have a family connection. Our Dan Ellacott’s sister (Michelle) has a fantastic accountancy practice also based in our village of St. Osyth in Essex. We often get asked about how park’s construct their invoices and what is AND isn’t included! Here’s a breakdown of the detail…
Sales Invoices – What must they include?
Sales invoices are the lifeblood of every business! It’s always great when we’ve raised a lot of them or when the figures per invoice are on the up, but other than the vital ££s, do you know what else must be included on your sales invoices?
Interestingly, HMRC sets out specific guidance for businesses, confirming what must be evident on every sales invoice. Their guidance states:
Your invoices must include:
- A sequential number based on one or more series which uniquely identifies
the document - The time of the supply
- The date of issue of the document
(where different to the time of supply) - The name, address and VAT registration number of the supplier
- The name and address of the person to whom the goods or services are supplied
- A description sufficient to identify the goods or services supplied
- For each description, the quantity of the goods or the extent of the services, and the rate of VAT and the amount payable, excluding VAT, expressed in any currency
- The gross total amount payable,excluding VAT, expressed in any currency
- The rate of any cash discount offered
- The total amount of VAT chargeable, expressed in sterling
- The unit price
You can find out more at www.gov.uk/invoicing-and-taking-payment-from-customers/invoices-what-they-must-include.
There are other points to consider depending on whether you’re a sole trader, limited company or VAT-registered. HMRC rules state:
Sole trader invoices must include:
- Your name and any business name being used
- An address where any legal documents can be delivered to you if you are using a business name
Limited company invoices must include the following:
- The full company name as it appears on the certificate of incorporation.
- If you decide to put the names of your directors on your invoices, you must include the names of all directors.
VAT invoices must include:
- You must use VAT invoices if you and your customer are VAT-registered. These include more information than non-VAT invoices.
You can find more information about the specific rules regarding VAT invoices at www.gov.uk/charge-reclaim-record-vat or contact Ellacott Morris for bespoke advice and assistance about your business.
One of the many brilliant things about choosing Ellacott Morris as your accountant is that we only work on Xero cloud accounting software. Xero is an incredible tool that makes your business accounting easier and better! Xero includes sales invoice templates suited to your specific organisational needs, ensuring every invoice you send includes everything needed.
So, if you need to make lighter work of your sales invoicing or reduce your accountancy admin hours, you need to speak with Ellacott Morris! Find out more about our ‘Financial Dream Team’ and then get in touch on 01255 425059 or [email protected].
