Can I send an invoice only after payment is made?

Mistral001

MyMissC3 wrote: »

So say I do the job this month (tax year 2011-2012) and they pay me in December 2012 (tax year 2011-2013).

Are you really saying that I have to pay tax on it in the tax year 11-12 even if I did not receive any payment?!!

!!!!!!!!!

My accountant told this me not long after I started work 14 years ago. It seems unfair, but that is the way it is.

Invoices in my experience are very important documents. They should be correct in every detail. They are used as evidence of the transaction by numerous people including accountants, banks, tax authorities, courts and even the police (fraud squad). I would not put anything down on them that is meant to mislead anybody.

I thnk you should have a chat with your accountant.

Horace

I think that you should do your due diligence on clients too to ensure that they have the ability to pay before accepting any order for work from them.

I know that many firms ask for a 50% deposit up front these days and the remainder upon completion - maybe this is something that you should consider?

To wait 12 months for payment is crazy - you need to get them into court before then because that will at least give them a wake up call. If it is goods that you have sold then in your terms and conditions you should have a clause stating that ownership of the goods remains with you until paid for in full - if they don't pay then you can visit their premises and retrieve the goods.

Paddy2eyes

If you produce invoices it is some solid evidence if you need to take your client to court for non payment, which you should consider doing if they are not paying up within a reasonable time.

Savvy_Sue

Mistral001 wrote: »

Invoices in my experience are very important documents. They should be correct in every detail.

Right down to putting exactly the right subject line in the email to which you are attaching the invoice if it's being submitted to a local council for payment! :mad:

Mistral001

Paddy2eyes wrote: »

If you produce invoices it is some solid evidence if you need to take your client to court for non payment, which you should consider doing if they are not paying up within a reasonable time.

I once took a three different clients to the small claims court for non-payment. The cases were heard in the same court session. The amounts were all for less than £200. The defendants did not bother to come to court and after I was sworn in by the court clerk, the judge asked only one question in each case the question was "do you have an invoice?". I handed him the first one and then after reading it, announced "found in favour of the plaintiff". This proceedure was carried out in each case.

So yes invoices are very important. Try presenting a back or post dated invoice or one that is incorrect in some other way to a judge and you might find some difficulies?

MyMissC3

Hi all,

sorry for my late reply. Thank you all for your answers which gave me a deeper understanding of the entire process, and scenarios. I had already planned a meeting with the accountant that clearly is the best thing to do!

Again thank you very much!