Invoicing & expenses

A sales invoice records money a customer owes you and posts the income (and VAT, if you charge it) to your ledger. A compliant UK invoice needs a few specific things.

• A unique, sequential invoice number.
• Your business name and address (and VAT number if registered).
• The customer’s name and address.
• The invoice date and (if different) the supply/tax point date.
• A description of what you sold, the amount, and the VAT rate and amount if applicable.
• The total payable.

Send a quote before the work, then convert it to an invoice once accepted — no re-keying. Quotes do not affect your ledger until they become invoices.

Record what you buy so your costs, profit and VAT are right. A bill is money you owe a supplier; an expense is usually something already paid. Attach the receipt or invoice to the transaction — HMRC expects you to keep evidence, and it makes reviews and reclaims painless.

1. 1Create a bill or expense and choose the supplier.
2. 2Enter the amount, the expense category, and the VAT rate.
3. 3Attach a photo or PDF of the receipt.
4. 4Record payment now, or match it later from your bank feed.