Best Way to Invoice

[Epiphone]

Greetings,



Plan B is up and running now but due to a couple of admin problems there's one or two hitches.

In a nutshell I'm using a brolly for day to day work and thought it'd be an idea to use managed ltd for Plan B. The thinking behind this was mainly to take admin burden off me and also only pay out their fees when Plan B started to make money (as opposed to it not bringing in anything for a few months but having to pay an accountant during that time).

Turns out the managed ltd folks are cr*p and they're now sacked (I know, I know, should have done it all myself from the start). Lesson learnt and the managed ltd are sacked, forms going to Companies House to change address, Secretary etc then accountant will be set on. Also getting bank account from Abbey.

In the meantime (there's a point in all this? ) I have my first paying victim, er, customer this weekend.

So, how to invoice them? It will probably be cash in hand as payment. I have an invoice template set up. I understand this must have VAT number on it if you're VAT registered. Managed ltd say the VAT man is taking awhile to get it sorted so there isn't a VAT number yet. Is this right and because the wheels are in motion do I still charge VAT?

Once the money is in my grubby hands does the customer need a receipt or should I just send them an invoice marked as "paid" in the post later? If the shoe was on the other foot I'd want a receipt for my cash. Do these need to be in a particular format or as long as it has company details on and something like "receipt for £X for Y services" will that do?

With regards to money I believe I can keep it on one side then put it in company account once opened and make sure my records tally up (e.g. 3 invoices for £100 each, make sure there's £300 in the account). Is that right?

cheers for reading my ramblings, feel free to kick me about for being lazy and not doing it all myself from the start.

ta muchly

[TheMonkey]

Just buy sage and use that to do it all.

[BoredBloke]

Are you really going to declare cash in hand work - I thought that was the holy grail. Money which is untraceable, especially if you don't give reciepts.

[TheMonkey]

Good point!

[chef]

I'm in a similar situation, currently have a gig for 7 weeks with a client (SME sized Telecoms company) who are quite happy for me to invoice them (no VAT on the invoice as a:I'm not VAT registered because b:I dont expect to earn the threshold due to a large vacation most of next year), they pay me by cheque billed weekly, i cash it, all is good.

However, Brown being the sneaky g!t he is, I was planning on keeping a % back for end of yr declaration as Other Income.. only 2 things you can be sure of death n taxes.

I send no receipt, they dont expect a receipt, everyone is happy.

p.s the reason i dont pocket the lot is solely because the daily rate is good enough to make a resulting tax bill if ever it was discovered a BIG problem, hence the foresight to put some away and declare it all..

[VectraMan]

Managed ltd say the VAT man is taking awhile to get it sorted so there isn't a VAT number yet. Is this right and because the wheels are in motion do I still charge VAT?

If it's after the start date you told the VAT man, you're meant to write "VAT registration pending" on the invoice, and not charge the VAT. Then in a few months time when it comes through, you have to re-invoice them for the VAT. Arse pain in the.

[ASB]

I'm in a similar situation, currently have a gig for 7 weeks with a client (SME sized Telecoms company) who are quite happy for me to invoice them (no VAT on the invoice as a:I'm not VAT registered because b:I dont expect to earn the threshold due to a large vacation most of next year), they pay me by cheque billed weekly, i cash it, all is good.

However, Brown being the sneaky g!t he is, I was planning on keeping a % back for end of yr declaration as Other Income.. only 2 things you can be sure of death n taxes.

I send no receipt, they dont expect a receipt, everyone is happy.

p.s the reason i dont pocket the lot is solely because the daily rate is good enough to make a resulting tax bill if ever it was discovered a BIG problem, hence the foresight to put some away and declare it all..

Chef,

You might be wise to reigster as self employed if yuou are invoicing personally. It will be taxable as normal but don't forget the relevant 2 types of NI that are associated with self employed income too.

[chef]

Yup already in the process,

Cheers ASB

[ASB]

Yup already in the process,

Cheers ASB

One thing that seems a bit mean though is HMRC seem to expect you to pay the 2.10 class 2 rate for every week of the year. Seems a bit unfair if you only do odd bits and pieces

I used to emply a mate on an S/E basis for about 20 days a year of odd and ends. He told me he got stiffed for this. I don't know if he ever got it back or not.

[chef]

It's a pain I agree, but its less than just a few mins work a week to meet yet another stealth tax.. annoying, but it won't break the bank.. i'll just smile next time I go for a cig break knowing that my weekly "dues" to Big Daddy Brown are all paid up..

Thanks for advice
Chef