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As regards the invoices - absolutely an invoice must be 'raised' - even if it is never printed out.
Using a programme like Quickbooks means it easy to raise and mark off as paid in a manner of seconds.
Being brutally honest (as its a situation that we are looking at), its highly likely that you will loose many of the lower end clients when you implement an immediate 20% increase on prices (as you will have to being VAT registered).
There are some advantages to registering even if you aren't required to - for us it will be a massive VAT clawback on four years worth of capital expenses.
Thanks for reply Adam. So you mean basically create the invoice but don't actually give it to customer? Looking at getting Quickbooks at the moment as dont currently use a program so sounds like that is the way to go.
We are aware that we may lose some clients which is why we have been putting this off for so long. It may be that we have to take a hit on some of them initially to keep them. But as you say at least we can claw back some VAT.
Thats exactly what I mean. For many years now we have rolled every account to 'month end' - which for us is the last friday of every month. Clients are invoiced by email, if they have already paid then they effectively get a 'zero balance' invoice showing the works they have had throughout the month and marked off as paid.
95% of clients pay by BACS, which is great as linked into quickbooks, a few clicks and everything is sorted into categories and cross referenced.
Quickbooks is pretty easy to use once you get your head round it and for circs £30 a month it will save you a LOT of time and effort compared to a manual system - plus its 'making tax digital' compliant which you will certainly need once you are in the relams of VAT!
You do need to issue an invoice, but why issue your invoices on a monthly basis whech reduces the amount office work.
You don't need to show the VAT on the invoice to residential customers, as long as the price is inclusive of vat.
I wouldn't be affraid of hicking your prices by 20% + as they do seem to be on the low side, our lowest price for the smallest job is £30+vat.
That would certainly reduce the admin a bit invoicing monthly. Think the rates we charge are probably right for where we are based. We wouldn't get away with that level of pricing for small jobs unfortunately!
Thanks for your input.
Been registered over 40 years, what we do is list all the minor jobs on one invoice each month with customers name and amount paid and total them as one vat inclusive total. We don't invoice the small customers individually, simple!
I really don't think all our small domestic customers will want an invoice especially as a lot are elderly and some don't have emails so would need to be a paper one.
I suggest youraise simple invoices using a basic accounts system ( issuing a paper invoice if needed ) and give to customers - especially if elderly.
Their family would appreciate the clarity and ensures they understand where money is being spent if forgetful or with dementia.
I try to ensure my elderly parents always get Quotes in writing and invoices, marked as paid as required.
It's a chance to protect your business by detailing what has been completed for what costs and makes good business practice along with making accounts a doddle
P.s. If vat registered I would always show the Vat element & rate on any invoice even to domestic clients for many reasons.
I was VAT Registered, but dropped out of it a long time ago.
You can do simplified invoices for small amounts.
https://www.gov.uk/vat-record-keeping/vat-invoices
Thanks for that Andrew. Have had a look and that will make things a bit easier
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