Invoicing requirements for United Kingdom
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About this article
This article can be edited by any user by clicking "Edit" at the top of this page. We invite you to collaborate with this article and help other translators to know how to issue invoices in the United Kingdom.
You can discuss with other ProZ.com users about invoicing requirements in the United Kingdom at the following forum thread: Invoicing in the United Kingdom (and requirements)
Invoice sample (PDF)
This is an example of an invoice issued by a sole trader (a translator getting started in the business) to a client (an individual), both in the United Kingdom
Information that invoices must contain
A translator acting as sole trader must include the following information in the invoice:
- The invoice must clearly state that it is an invoice with the word "invoice" on it.
- A unique identification number (Invoice #).
- Your name (or company name), address and contact information.
- Name (or company name) and address of the customer you are invoicing.
- A clear description of what you are 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.
Source: http://www.businesslink.gov.uk/bdotg/action/detail?r.s=sl&type=RESOURCES&itemId=1073791759
Taxes
VAT (Value Added Tax)
Value added tax (VAT), or goods and services tax (GST) is a consumption tax (CT) levied on any value that is added to a product.
Read more: http://en.wikipedia.org/wiki/Value_added_tax
VAT for translation services is +17.5%
When do I need to charge VAT?
At the moment, as a translator working in the UK and supplying my translation services to clients in other EU countries, whether businesses or non-businesses, the rule seems to be that the supply is treated as occurring where the supplier belongs- meaning, in my case, the UK VAT rules apply. The practical effect is that unless you have a turnover of £68,000, you don't need to register for VAT in the UK.
More information: http://www.proz.com/forum/money_matters/153466-eu_vat_changes_as_of_1_jan_2010.html
Invoice template
The ProZ.com Invoicing tool offers a variety of invoice templates that can be used to generate invoices in HTML or/and PDF formats.