How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4198
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

Invoices and naming convention. On the HMRC its stated as

Customer Question

Invoices and naming convention.
On the HMRC it's stated as a requirement to show on an invoice:
"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"

I want to ask if I can adopt a naming convention with the following logic:
NAME-YYYY-XXXX
where:
NAME is XXXXX XXXXX of my business
YYYY is the year
XXXX is a progressive number

In particular is it legit resentting the counter when a new year starts. For instance let's suppose that my last invoice number of 2014 will have the following number:
NAME-2014-158
Is it correct issuing the first invoice of 2015 with the following name:
NAME-2015-1

Is it correct including some text in the invoice number or it should be a merely numeric identification code?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

Don't get overworked over this. VAT inspections are few and far between; not like the old days when I had an Inspector demanding to see the voucher for 13p of input tax reclaimed!

Under VAT legislation every invoice should be dated, quote the organisation's VAT number, state the rate at which VAT charged and the amount of tax. Obviously it helps everybody, you included, if each invoice has an unique serial number, preferably in some logical order. You should retain a copy for your accounts.

Your proposed numbering is perfect, you can have letters, numbers, symbols or a combination; it does not matter. The companies I run have numbering 13/14/XXX for last year and 14/15/XXX this year, accounting years overlap the calender year end you see. Another company I work for sequentially numbers invoices from zero as do many others.

I do hope I have helped ease your worries and clarified the position.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

It's not about getting overworked... it about writing consistent requirements for the web-agency... then the invoice generation will take to me zero time because completely automatized.


 


Thanks for you answer

Expert:  bigduckontax replied 3 years ago.
Yes, many big firms create invoice numbers automatically.

Thank you for your support.