Invoicing in the UK
Issuing error-free invoices is an important requirement when doing business in the UK to avoid any legal conflicts with vendors/suppliers as well as remaining HMRC. Invoices in the UK are subject to strict regulation so it’s vital that your business is up to date when preparing a VAT invoice. As a global PEO with the capabilities to manage invoice processing around the world, INS Global can assist your business in the UK in issuing invoices and collecting payments on your behalf. In this guide, we explain the essential components to an invoice and any requirements you must follow to ensure the correct issuance to your suppliers and vendors.
What to include on an invoice?
If you sell a product or a service in the United Kingdom, you must issue your customer with an invoice. According to HMRC, for a document to be considered a valid invoice in the UK, it must detail certain mandatory information. This includes:
- a unique identification number
- your company name, address and contact information
- the company name and address of the customer you’re invoicing
- a clear description of what you’re charging for
- the date the goods or service were provided (supply date)
- the date of the invoice
- the amount(s) being charged
- VAT amount if applicable
- the total amount owed
If both you and your customer are VAT-registered, you must issue a VAT invoice whenever you supply standard rate or reduced rate goods or services to another VAT-registered party. Typically, you must issue a VAT invoice within 30 days of the date you make the supply. When working with VAT invoices, you must include additional information including:
- VAT registration number
- Tax point (time of supply)
- Price per item (excluding VAT)
- Total amount excluding VAT
- Total VAT amount
- Item quantity and discount rate (if applicable)
- VAT rate charged per item
- Total amount including VAT
In line with VAT law, you business must follow record keeping regulations when issuing invoices as a UK business. It’s a good idea to keep records of all your financial transactions whether you use electronic of paper invoices. HMRC requires records of invoices to be kept for 6 years and can use your records to confirm that you’ve been charging and paying the correct amount of VAT.
Advantages of outsourcing your invoicing process
If your company is looking to streamline its financial and accounting processes, hiring specialist that deals with invoice processing will help give your company a competitive edge.
- Improvement in productivity – Outsourcing your accounts payable to a partner like INS Global can increase your productivity and optimize your billing process.
- Saving costs – Running your own accounts payable department involves training teams and obtaining the necessary tools and software to issue invoices. By outsourcing the process, there’s no need to have a dedicated team to deal with the process.
- Fast and accurate processing – We improve the overall invoicing process and ensure payments are collected on time regardless of the format. We support physical and electronic invoices.
Streamline your invoicing process
We offer a transparent service, tailored to your business needs. We prepare the invoice, process the payment from your client and issue proof of payment and tax receipts for your record. By choosing INS Global:
- Your company does not need to have a local entity;
- We prepare your invoice in accordance with your needs;
- You can make payments in GBP and other currencies;
- No minimum required for invoiced amounts or number of transactions.
INS Global: Outsource your invoicing process in the UK
Since 2006, INS Global is specialized in global expansion solutions including invoice processing and management for companies around the world. By choosing us as your invoicing partner, we ensure fast and efficient invoice processes that conform to regulations set out by HMRC, so you can have peace of mind when collecting payments for goods and services in the United Kingdom. Contact our advisors today to learn more.