Invoicing

An invoice is a bill you send to someone for the amount they owe you for payment of fees. Most organisations will not pay self employed people until they submit an invoice.

Most invoices should include:

  • Invoice number – a reference number made up by you so you can track the payment more easily
  • Date of invoice
  • Description and date/s of work
  • National Insurance number and UTR
  • How you would like to be paid – usually by cheque or bank transfer (also called BACS)
  • Information needed to make a payment, like your bank account details
  • Contact address and telephone number
  • Any other relevant information, like your VAT or company registration number if you have one
  • Terms of payment – how long after the invoice date you require payment; a standard is 30 days after the invoice date

You can charge interest on unpaid invoices to encourage organisations to pay promptly if you are self-employed – if an organisation does not pay your invoice within your payment terms, send a new invoice with interest added.  It’s a good idea to include in your invoices that you will charge interest on late payments to ensure payments are received on time.

Read this related article by Creative Boom with great tips on how to get paid.

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