People often confuse receipts with invoices. Whilst a receipt is simply an acknowledgement of a payment, an invoice is more detailed and depending upon whether you are a sole trader, limited company and whether you are registered for VAT affects the level of information you must include in an invoice.
All invoices should include:
- The word ‘invoice’ on the document
- A unique identification number
- Your company name, address and contact details
- Your customer’s company name and address
- Details of what you are charging for
- The date the goods or service were supplied
- An invoice date
- The net amount being charged
- A separate VAT breakdown if applicable
- the total amount owed
Sole traders must also include:
- Your name along with any business name being used
- A business address
Limited company invoices must also include:
- The full company name as it appears on the certificate of incorporation.
If you opt to include the names of your directors on your invoices, you must include ALL directors.
It is important to note that if you sell a product or a service and both you and the customer are registered for VAT – otherwise known as a business to business transaction – then by law you must, provide an invoice.
At Salhan Fund Flow, we are able to provide advice on invoicing for your business. To find out more, please contact us.