Invoicing is an essential part of any business. This blog post is following our previous 'How to make a perfect invoice' (linked below) and is aimed at giving readers all the essential information anyone thinking about going self-employed MUST know when it comes to the HMRC's invoicing VAT requirements.
HMRC’s VAT Requirements:
· Your name (or trading name) and address
· Your VAT registration number
· An invoice number that is unique and follows on from the number of the previous invoice.
· The invoice date
· The time of supply, also known as the tax point.
· The customer’s name (or trading name) and address
· A description that identifies the goods or service the invoice is regarding
· The rate of any cash discount
· The total amount of Vat Charged
For each different type of item listed on the invoice, you must show:
· The unit price rate, excluding VAT
· The quantity of goods or the extent of the service
· The rate of VAT that applies to what is 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.