Invoicing an individual as a sole trader

[laurieeee]

I tried to look it up but it was nowhere to be found - maybe because it is pretty simple (silly) question..
I will really appreciate any insight!

As a sole trader I will need to invoice customers for my services i will provide. Here is the question - on HMRC website it states that a sole trader MUST include unique number, address, business name, customer's name and address etc. on an invoice. How do I go about invoicing if I don't know customer's address?!
I am planning to set up translations agency where I get documents translated by freelancers and charge a customer a fee for translations. Very often such customer may not want to share their address with me and I would not want to ask. Is it okay to produce an invoice with JUST their name on it? According to HMRC website I have to include the address aswell...

Could someone clarify this please? I would be grateful.

Also one more question. If I am a sole trader, my business name would be Laurie Smith Translations. Do my suppliers have to invoice me as Laurie Smith Translations or would it be sufficient if they provided only my name and surname (Laurie Smith)?

 

[Newchodge]

If you don't know your client's address what are you going to do when they fail to pay you.

I cannot imagine any legitimate client refusing to give their address to their supplier. If they are wary of doing this I would see it as a danger signal.

 

[Chart Accountancy]

As you have correctly noted, the HMRC guide states that you need to show the customer's address. If you have any customers refusing to provide their address, try to explain to them why you need it, and if they still refuse, keep something in writing from them and keep a note in your files to show in cases of enquires that you have taken reasonable care to obtain their details. Only showing the name on the invoice may not generally be an issue if the amounts are not significant but if you want to have a well organised business and avoid any unwanted questions from HMRC in cases of enquires, it is best to follow the rules strictly and you have done the right thing by checking this.

With regard to invoices from your suppliers, you should provide both your name and your trading name. However, as your trading name includes both your names, you can only use your trading name.

 

[StevensOnln1]

Since when have HMRC had any requirements for what must be shown in the way of client details on a non-VAT invoice?

 

[Chart Accountancy]

There is nothing to stop a business issuing an invoice with incomplete details. However, when vat is involved there are strict rules on what a valid invoice should include but it is only to allow the customer to reclaim the vat. The general guide is that an invoice should include the customer details unless it is in the retail sector.

 

[laurieeee]

Sorry so I don't understand. I am not registered for VAT and I don't have to be, I did however see on the gov's website that an invoice MUST include customer's address etc. Is that correct?

 

[Chart Accountancy]

It is a good practice to include the customer address on the invoice. If you are not able to obtain the address, you can still issue the invoice. The HMRC guide refers to vat invoices where the rules are more strict.

 

[nelioneil]

Personally I wouldn't do business if they cannot provide their address!

 

[MyAccountantOnline]

.... - on HMRC website it states that a sole trader MUST include unique number, address, business name, customer's name and address etc. on an invoice. How do I go about invoicing if I don't know customer's address?!
I am planning to set up translations agency where I get documents translated by freelancers and charge a customer a fee for translations. Very often such customer may not want to share their address with me and I would not want to ask. Is it okay to produce an invoice with JUST their name on it? According to HMRC website I have to include the address aswell...

...

I suspect you've looked at the requirements for a VAT invoice. If you arent VAT registered and arent issuing a VAT invoice a customer name and email address on the invoice is fine.

.... ...
Also one more question. If I am a sole trader, my business name would be Laurie Smith Translations. Do my suppliers have to invoice me as Laurie Smith Translations or would it be sufficient if they provided only my name and surname (Laurie Smith)?

Either is fine.

 

[laurieeee]

Thank you Everyone for your responses!

I am not VAT registered. Does it mean that I DO NOT have to provide my customer's address on the invoice I produce for them?
Could someone confirm this please? Really appreciate it!

 

[StevensOnln1]

There are no specific requirements for what must be shown on an invoice if you are not VAT registered. Although there is no reason not to show the customer's address if they are willing to provide it.

 

[laurieeee]

Thank you StevensOnln1, my type of customers may not want to provide their address (long story why, it is confidential services), that's why I am wondering.

 

[laurieeee]

Also, when my supplier produces an invoice for me, do they have to provide my business' unique number? Or is my name, trading name and address enough?

 

[Newchodge]

Your business does not have a unique number. Only ltd companies have those. So name and address is enough.

Even ltd companies don't need their companies house number on their suppliers' invoices.

 

[paulears]

Laurie - why not just do what I do on those rare occasions - I invoice Fred Smith and then for his address [email protected] - it's an email address, and if that email worked for the order coming in, and the translation going back - that's fine.

For me, I often receive money from people I don't know. One person books the services, the incoming payment often has somebody else's name on it. If, as happens in my case, this was for work carried out at a specific theatre, then I produce the invoice in the individuals name and then the theatre's address where the show happened.

Just include the details you have, and it's fine if HMRC ask, as long as the paper trail is present.

 

[laurieeee]

Paulears, thanks so much! In my case I may not know the address of the customer most of the time. Is that fine? Or is it better if I get those addresses?
Thanks for being so helpful..
Newchodge, thanks..

 

[paulears]

Do they pay you cash? If so then an address is always a good step in the evidence chain in case you ever have problems with money laundering, but if they pay you electronically, then you always have some kind of reference?

 

[Gecko001]

If the following HMRC link is what the OP consulted, then it would appear that an address is required as this includes sole traders who are not registered for VAT

https://www.gov.uk/invoicing-and-taking-payment-from-customers/invoices-what-they-must-include

However it is ambiguous in places. For instance it only mentions "the company name and address of the customer you’re invoicing" and says nothing about invoicing an individual person.

I would have thought that HMRC's main concern with regard to the address is money laundering, but not having an address is risky to you as not knowing where the person lives could prove a difficulty if they do not pay you as others have said.

 

[paulears]

That states that the trader's address must be shown on the invoice, no mention of customers - which does make sense, because if you buy a tank of petrol from Shell for £100, they give you the details with everything on - apart from your name and address as a customer, because they don't know it. If you are a sole trader, then having your own contact details makes huge sense, let alone a requirement - because you'd like them to come back?

 

[Gecko001]

That states that the trader's address must be shown on the invoice, no mention of customers - which does make sense, because if you buy a tank of petrol from Shell for £100, they give you the details with everything on - apart from your name and address as a customer, because they don't know it. If you are a sole trader, then having your own contact details makes huge sense, let alone a requirement - because you'd like them to come back?

In the link the Sole trader heading refers to items "the invoice must also include". That would appear to mean in addition to those items listed above that heading. .

 

[paulears]

Yep - but the section above relating to invoices is only referring to the entity who issues the invoice - it does not mention the actual client/customer at all.

 

[Gecko001]

I hate to be pedantic, but..... Actually I am lying, I love being pedantic. The third bullet point on heading 2 mentions "address of the customer you’re invoicing".

 

[paulears]

Yep - but it does say company name and address and I read that as an indication that a private individual, not being a company, doesn't need to comply - otherwise law abiding businesses would never issue VAT receipts with no name?

Actually - seriously now - what is the difference between an invoice and a receipt? Does that mean that the invoice must always be a credit document, and why pro-forma invoices are issued by many when money is paid up front? Can't see that payment can be the reason - but if you are providing credit, on a document that is a component of your accounts, maybe that's it? Stops you invoicing to people that don't exist, then claiming it as a bad debt? Must some some reason for the difference?