Invoices can be created within your accounting software using a template, or follow our guidelines below.

Under normal circumstances you will invoice your agency and/or clients at the end of each month, adding VAT at the standard rate on both your fees and your total expenses (irrespective of whether you were charged VAT on these expenses). You should always invoice in your company’s name, and it might be convenient to raise separate invoices for fees and for expenses. If you are not sure how to set out an invoice, we will provide draft invoices to guide you. 

It is convenient to use company headed paper for producing invoices. Each invoice must contain the following information:

• A unique invoice number
• The date (this must be after the date of incorporation)
• Your VAT number (which could already be on your headed paper)

When working through an agency, you may have an arrangement whereby you invoice the agency for your time and you invoice the client for your expenses, and this is quite acceptable. Alternatively, you may have an arrangement whereby your client settles certain expenses, such as flights and hotel bills, directly with the supplier, and this also is perfectly acceptable. 

You must ensure that you always claim expenses from your client through your company rather than directly from your client in your own name. If you were to claim expenses on a personal basis this would strongly indicate that your assignment comes within the rules of IR35, since this is the normal way that an employer reimburses expenses to employees. This would also affect your position under the Agency Workers Regulations. If for any reason you do claim your expenses in this way, you should expect to receive a P11D from your client at the end of the tax year.