VAT Invoice Numbers

[vincent80]

I’ve been reading that a Vat invoice must have a unique and sequential number series. So is either of the examples below acceptable? (for Ltd)


Example A

(Month1)
Client A: Invoice No. 0001
Client B: Invoice No. 0002
Client C: Invoice No. 0003

(Month 2)
Client A: Invoice No. 0004
Client B: Invoice No. 0005
Client C: Invoice No. 0006

Client D: Invoice No. 0007
Client E: Invoice No. 0008

or

Example B

(Month1)
Client A: Invoice No. AA/0001
Client B: Invoice No. BB/0001
Client C: Invoice No. CC/0001

(Month 2)
Client A: Invoice No. AA/0002
Client B: Invoice No. BB/0002
Client C: Invoice No. CC/0003

Client D: Invoice No. DD/0001
Client E: Invoice No. EE/0001


Or is there a better way of doing this?

 

[Blade Printers]

Hi,
Example A, I cannot see why you'd want to complicate matters. Your book keeping software should give you these numbers numerically anyway.

Cheers John

 

[paulears]

The only reason I believe, for the sequential system is simply to show continuity and there are no gaps in the system where invoices could have been deleted, once paid so the transaction 'never took place'. They don't prescribe any form of numbering - it's up to you, but there needs to be continuous increments between invoices.

 

[Blade Printers]

The following link will show you all you need to know - if using computer based book keeping it will be numerical.

http://www.hmrc.gov.uk/vat/managing/charging/vat-invoices.htm#2

Cheers John

 

[sanjiv]

I prefer B as a customer but do whatever your software comes standard with. Isn't too important.

 

[vincent80]

Thank you for all your responses. I only have a handful of clients and do not use any software, just an excel worksheet that has been customised to my needs and that is saved as a PDF and sent over as the invoice.

I prefer example B, as that way none of my clients would know approximately how many other clients I have on board. Whereas if I invoiced as shown in Example A and one month they get an invoice with the number 0011 and the following month another one showing 0019 then they would know how many other clients I have on board.

 

[sanjiv]

Thank you for all your responses. I only have a handful of clients and do not use any software, just an excel worksheet that has been customised to my needs and that is saved as a PDF and sent over as the invoice.

I prefer example B, as that way none of my clients would know approximately how many other clients I have on board. Whereas if I invoiced as shown in Example A and one month they get an invoice with the number 0011 and the following month another one showing 0019 then they would know how many other clients I have on board.

If it is simple to use example b, go for it. How are you using excel at the moment? Different sheet per client?

 

[Blade Printers]

one month they get an invoice with the number 0011 and the following month another one showing 0019 then they would know how many other clients I have on board.

How would that show them how many clients you have?
All it shows is you have issued 8 invoices since invoice number 0011 :|

 

[vincent80]

If it is simple to use example b, go for it. How are you using excel at the moment? Different sheet per client?

I'm just newly set up as Ltd after having traded as a sole trader. I'm using an excel worksheet per client.

 

[vincent80]

How would that show them how many clients you have?
All it shows is you have issued 8 invoices since invoice number 0011 :|

As I bill clients on monthly basis (all at different times of the month) they will figure it out when the following month they get an invoice numbered 0027, then the following month 0035 etc

So issusing 8 invoices (or whatever the number will be), indicates the number of clients I have on board.

 

[sanjiv]

I'm just newly set up as Ltd after having traded as a sole trader. I'm using an excel worksheet per client.

If its a different worksheet per client, example B would be easier to use than example A because you just add 1 to the last invoice. Sounds good

 

[MyAccountantOnline]

T... if I invoiced as shown in Example A and one month they get an invoice with the number 0011 and the following month another one showing 0019 then they would know how many other clients I have on board.

Does really that matter?

If you are VAT registered HMRC state

A VAT invoice must show:

an invoice number which is unique and follows on from the number of the previous invoice - if you spoil or cancel a serially numbered invoice, you must keep it to show to a VAT officer at your next VAT inspection

(copied from HMRC website)

 

[vincent80]

Does really that matter?

If you are VAT registered HMRC state

A VAT invoice must show:

an invoice number which is unique and follows on from the number of the previous invoice - if you spoil or cancel a serially numbered invoice, you must keep it to show to a VAT officer at your next VAT inspection

(copied from HMRC website)

So is example B invalid then?