Invoice Templates UK - The quick and convenient solution

By Viditagarwal    11 / Jan / 2019    In Category Finance

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An invoice is a business document where all the business sales are recorded. It is an imperative business document which has details about a single sale and includes business name, address of operations, quantity sold, costs per item, and applicable taxes. For the financial health of a company, it is crucial to capture details correctly and specify the terms of contract such as payment terms (credit period). The following details encompass the top section of an invoice:

  • Seller’s company name, address, and contact details (phone number / email)
  • Invoice number and date

An invoice format: An uncomplicated presentation of an invoice captures the business details of the seller and customer, forming the basic invoice details. In the middle section, the seller provides details about goods and services being sold; price per product; quantity sold. The lower section forms part of computation (total, tax rate, grand invoice total). Each invoice is referred with a unique invoice id.

A seller should, without a doubt, define the terms of payment to avoid any confusion with a valuable customer. The terms of payment can include – mode of payment (cash, draft, cheque, or online bank transfer), credit period – term of payment. A company registration number should also be stated along with the VAT registration number of the business. Electronic accounting software can take care of the administrative work. Through accounting software, invoice number will be generated automatically and will decrease the number of heads deployed to a manual procedure.

Invoice Template UK

  •  of the business – The business name needs to be mentioned on the invoice. For a sole trader, the trade name along with the trader’s name needs to be stated on the invoice
  • Invoice Number – It is imperative to have an unvarying invoice numbering system and numbers should be in succession. If a number is skipped, HM Revenue and Customs (HMRC) might get concerned about the business activities and can inspect the records. Even if an invoice is cancelled, proper record needs to be maintained
  • Order Number / Reference – If the customer generates an online purchase order, the seller must update the electronic generated order number and state it on the invoice. This is updated in the customer’s system with the invoice details automatically when the order is delivered. This is very common with big clients
  •  – The accurate value added tax (VAT) rate should be charged as some goods or services might fall under the exemption category
  •  – Copies of all the invoices must be kept, even if it is a crossed invoice. Electronic copies are all valid however an organisation must make certain that it has a strong backup system in place
  • Bank Details – Bank details, along with the relevant bank code, should be stated on the invoice to make the bank transfer process easy
  • Payment Terms – Businesses should carefully draft their payment terms, clearly define the credit period
  • Record Keeping – In today’s time of cloud computing, business can use online accounting software to reduce the manual work and generate invoices automatically. In case a business prefers not to opt for an online accounting system they must keep record of all the invoices. Key items to be noted are:
    • Invoice date
    • Invoice number
    • Date of payment
    • Invoice grand total (including VAT amount)
    • Customer name
    • Product or service particulars

Types of Invoice Templates

  • Sole Trader Invoice Template
  • Limited Company Invoice Template

Freelancer and Contractor Invoice Template