What should an invoice comply with?
As a freelancer, it's important that your invoices are correct. Not only because clients appreciate it, but also because HMRC has rules about it. Without a complete invoice: no deductible VAT and potential fines. But don't panic, creating an invoice as a freelancer is simpler than you think, especially if you approach it smartly.
Did you know that an invoice must contain at least 12 mandatory elements? For example, your Companies House number and VAT ID.
What information is mandatory on your invoice?
A good invoice always contains certain information. So pay attention:
- Your company name and your client's.
- Address details of both parties (no PO boxes).
- Your Companies House number and VAT ID.
- Invoice number (unique and sequential).
- Invoice date.
- Clear description of the services or products provided.
- VAT amounts and rates.
- Total amount.
Are you not VAT registered? Clearly state on your invoice that you are exempt from VAT and why. For example: "Invoice exempt from VAT under the small business scheme."
Can you create an invoice yourself?
Of course! Grab an Excel sheet or download a free template. But be careful: it often takes time and errors can easily creep in. And believe me, your accountant won't be happy if your VAT is completely wrong. It's better to choose a tool that handles everything for you. Like Booqdoo, for example. Create it super easily via our platform and it's immediately 100% compliant.
Is online invoicing a good idea?
Absolutely. With an online solution like Booqdoo, sending invoices becomes a breeze. No hassle with Word templates getting corrupted or Excel formulas suddenly not working. Everything is in one place and your clients can pay directly via a payment link. That saves you from sending a reminder.
When should you send an invoice?
According to HMRC, your invoice to business clients must be sent no later than 15 days after delivery. Do you work a lot with private individuals? Then the timing of invoicing depends on what you have agreed with your client. But be smart: the sooner you invoice, the faster you get paid.
How do you make an invoice attractive to your client?
A boring, unclear invoice is certainly not a business card for your company. Here are a few tips to keep your invoice attractive and professional:
- Use your logo.
- Ensure a neat, clear layout.
- Add a personal message.
- Use colours that match your corporate identity.
By doing that little bit extra, you impress your client and increase your chances of quick payment.
What payment term do you use?
The standard payment term in the UK is 30 days. But as a freelancer, you are fortunately free to deviate from this. Many freelancers opt for a stricter term of 14 days. This is especially useful if your cash flow is tight.
What do you do about late payments?
Unfortunately, this happens more often than you think. But don't worry, there are plenty of ways to solve this. First, send a friendly reminder. If that doesn't help? Then you can charge statutory interest. And if it gets really difficult, you can charge collection costs (provided you have mentioned this in advance).
Fortunately, with Booqdoo, you have to worry less about these kinds of things. Automatic reminders make late payments an exception rather than the rule.
How can Booqdoo help you with this?
With Booqdoo, you have an all-in-one solution for your business. That means: scheduling appointments, managing your website, running your webshop, and creating invoices. All from one clear system. This way, you not only easily create a professional invoice, but you can also immediately link it to your accounting.
Moreover, you can let clients pay directly via iDEAL or other payment methods. You save time and avoid hassle.
Pro tip: A business owner who gets paid directly saves an average of 30% on administration time. Working smarter = more time for clients!
Common mistakes when creating an invoice
- Not listing all mandatory information.
- Incorrect or missing VAT rates.
- Invoice numbers that are not sequential.
- No clear description of the services provided.
Always check your invoices before sending them or use a tool where most errors are automatically prevented. Yes, we're looking at you, Booqdoo!
Start professional invoicing today
As a freelancer, you want to appear professional and get paid quickly. A well-formatted invoice helps you enormously with this. Whether you choose manual entry or a smart tool, make sure your invoices meet the requirements and are clear to your client.