How to issue an invoice
A business invoice doesn't have to be specially designed or overly complex however it will create a more professional impression if it at least resembles any other documents you use. Keep to the same logo or at least the same colours as your other business related stationery.
Information that must be on a business invoice
The most crucial pieces of information your invoices must have are:
- it must state the word "invoice"
- a unique number for identification (it may help you reconcile your accounts if you include the date and a customer reference within the invoice number)
- your company name, address and contact information
- if you're a limited company you must also include your company registration number
- if you're a sole trader you must also include your own name if it’s not included in the company name (see what information must be on your company stationery for more detailed information on these last 3 points)
- the company name and address of the company you’re invoicing
- a clear description of what is being charged for
- an invoice date (the date you create or send the invoice)
- the supply date (the date the goods or service were provided)
- the amount(s) being charged
- if you’re registered for VAT you must show your VAT registration number, the amount of VAT being charged, and the VAT rate that has been applied (usually 17.5%)
- the total amount owed
Tips to make sure you get paid on time
If you want to improve your chances of your invoices being paid on time, it’s also a good idea to include:
- information on all the different payment methods you accept
- a due date which is the latest date the the invoice should be paid
Don't be afraid to chase for payment on over-due invoices - it's your money and you're entitled to it.
See our article on invoice factoring and discounting for another way to ensure quick payment of your business invoices.
What can you do if someone won't pay your invoice?
Unfortunately sometimes people just don't pay up. Here are some suggestions of what you could do in this situation:
- Consider how likely you are to get your money. Is it a 'can't pay' or a 'won't pay' situation. If it's 'can't' there may be very little you can do.
- Call the LawExpress legal helpline for advice on 08700 434 284 (please quote reference NLGS08) for pay-as-you-go legal advice.
- Send an official letter detailing the amount of money owed, what it's for and what steps you have already taken to get paid, and that your next step is to chase payment through the Government's Money Claim Online service. Sometimes this is enough to encourage people to pay.
- Look at the Money Claim Online website and consider whether to start legal proceedings to claim your money.
How to issue an invoice
A business invoice doesn't have to be specially designed or overly complex however it will create a more professional impression if it at least resembles any other documents you use. Keep to the same logo or at least the same colours as your other business related stationery.
Information that must be on a business invoice
The most crucial pieces of information your invoices must have are:
- it must state the word "invoice"
- a unique number for identification (it may help you reconcile your accounts if you include the date and a customer reference within the invoice number)
- your company name, address and contact information
- if you're a limited company you must also include your company registration number
- if you're a sole trader you must also include your own name if it’s not included in the company name (see what information must be on your company stationery for more detailed information on these last 3 points)
- the company name and address of the company you’re invoicing
- a clear description of what is being charged for
- an invoice date (the date you create or send the invoice)
- the supply date (the date the goods or service were provided)
- the amount(s) being charged
- if you’re registered for VAT you must show your VAT registration number, the amount of VAT being charged, and the VAT rate that has been applied (usually 17.5%)
- the total amount owed
Tips to make sure you get paid on time
If you want to improve your chances of your invoices being paid on time, it’s also a good idea to include:
- information on all the different payment methods you accept
- a due date which is the latest date the the invoice should be paid
Don't be afraid to chase for payment on over-due invoices - it's your money and you're entitled to it.
See our article on invoice factoring and discounting for another way to ensure quick payment of your business invoices.
What can you do if someone won't pay your invoice?
Unfortunately sometimes people just don't pay up. Here are some suggestions of what you could do in this situation:
- Consider how likely you are to get your money. Is it a 'can't pay' or a 'won't pay' situation. If it's 'can't' there may be very little you can do.
- Call the LawExpress legal helpline for advice on 08700 434 284 (please quote reference NLGS08) for pay-as-you-go legal advice.
- Send an official letter detailing the amount of money owed, what it's for and what steps you have already taken to get paid, and that your next step is to chase payment through the Government's Money Claim Online service. Sometimes this is enough to encourage people to pay.
- Look at the Money Claim Online website and consider whether to start legal proceedings to claim your money.