How do i create an invoice to be payed?

faringdon

Hi,
I started a new job on 29th Sept 2025. Its for a startup Engineering company in London. Working as an Electronics Engineer. I just read the "consultancy agreement", and it says i will be payed on the last business day of the month as long as i provide an invoice. What does this mean?

Its 9th Oct 2025 today, and they still havent asked me for my Bank details, so i have sent them, but it seems strange they didnt ask for them?

Please find here the text in my consultancy agreement...

___ ___ ___ ___

5. Fees

5.1 In consideration of the Consultant providing the Services in accordance with this agreement, the Company shall (subject to receipt by the Company of appropriate invoices in accordance with clause 5.2) pay to the Consultant a fee of GBP 5,000 per month exclusive of Value Added Tax (the "Fee").

5.2 The Fee shall accrue from day to day (Business Days only to be included) during the month in which the Services are provided and be payable on the last Business Day of every month.  Payment of the Fee shall only be made by the Company on receipt from the Consultant of an appropriate invoice for this purpose by the Consultant.  Invoices should be marked for the attention of the Board.
___ ___ ___ ___ ___

I thought they were taking me on PAYE on £60,000/year "pro rata", ie, they just keep paying me till they dont  want to employ me any more.

tacpot12

Short answer: Use Google Sheets to create an invoice template that looks like an invoice. Google "UK Invoice Format" to see examples of what invoices could look like. Then Google "What information must be included in a UK invoice for services?" and make sure you include this inforamtion. 

Long answer: You need an accounting system to keep a record of what invoices have been created and which have been paid. You also need the system to keep a record of what (allowable) expenses you have incurred in operating your business. Your accounting system could be built entirely using free software, or you could pay for a full-function accounting system like Sage, Xero or Freshbooks where you pay a monthly subscription to use the software. Such software allows you to customise the invoices produced by the system.  

It sounds like you need a conversation with an accountant urgently. 

 

SiliconChip

I don't think you really understand what your contractual relationship with this company is, they clearly believe you are not an employee but I'm not sure that's what you think (and indeed it's unclear whether the circumstances would make you an employee, a worker or self-employed). I strongly suggest that you arrange to see an accountant who can give you professional advice, which would include how to invoice the company (and as an aside the invoice would normally include the details of where the payment should be sent, which is probably why they haven't asked you for them).

Peter999_2

As has been said, on that sort of money it's pretty important that you get a good accountant.   I was a contractor for 10 years and the accountant saved me far more money than he cost me.

The invoice is very easy to do, just google one.

Will you ever earn more than the £5,000 a month?   That would be £60,000 a year so well under the £90,000.  However, if you register for VAT (and the contract you have specified says you can charge VAT) then you would be able to claim VAT back on business expenses (equipment etc.)    Also, you may be able to use flat rate VAT (when I was a contractor I could charge 20% VAT but the government only took 14.5% off me, in effect paying me to be a tax collector).

If you do get an accountant he/she will explain it all to you and make it as tax efficient as possible.
Another thing you need to know is whether your role is inside or outside or IR35 (this is decided by the business not you) as this will seriously affect how much and how you pay tax/NI.      

Seriously, get an accountant.

faringdon

Thanks, but i am not sure i can afford an accountant...this contract is only for one month...quoting from the "consultancy agreement"...

___ ___ ___

1.               Term

1.1            This agreement shall commence on the Commencement Date and shall continue for 1 months unless and until terminated by either party giving to the other 2 weeks' written notice.

"Commencement Date" means 29 September 2025

___ ___ ___ ___

...so one months pay isnt going to be enough to afford an accountant....thats if i even get payed.
Ive never been a "limited company" before, (if thats even the right term here?)  and dont have a clue what's involved.

Peter999_2

You've got a contract for only 1 month?

I've not had (and wouldn't agree to) a contract that short but if you are only working for 1 month then it's not worth having an accountant.     I've not had experience in such a short contract so wouldn't really know what you should do.

QrizB

Was this job one of the ones you've previously posted about?

https://forums.moneysavingexpert.com/discussion/6622803/signed-contract-of-employment-but-then-didnt-start-work

Or is this a third job?

As others have said above, this doesn't appear to be employment, but looks like self-employment. How was the job pitched to you? Were you expecting to be self-employed? Have you registered as self-employed with HMRC?

faringdon

N0 i havent registered as self employed. I dont know how to do that.
So are you saying i will not be payed?, because i dont have the means to do an invoice?, ie, i am not a limited company or something?
Do you think i should leave immediately, on the basis i will not be payed?

Cant i just give them my bank details and request they pay  into my bank?

It was one month because they  were stuck...and wanted to give me a month to see if i could fix their problem...and yes i have now fixed it....and   presumably they are just keeping me now because they had offered me a months contract with 2 weeks notice, so its not worth giving me notice now, because in two weeks from now we will be at the one month point....i guess.

GardenBirdWatcher

faringdon said:

Thanks, but i am not sure i can afford an accountant...this contract is only for one month...quoting from the "consultancy agreement"...

An initial consultation with an accountant would probably cost you a couple of hundred quid max and since you don't seem to have a clue about the basics such as creating an invoice, or even what your relationship is with your employer/client or how long the contract is going to last for (your first post seems to indicate you expect it to be a rolling contract, but your contract excerpt looks like it is fixed term for a month), then like others, I'd say it's vital to see one ASAP.

I'd also be looking to get professional liability insurance PDQ if I was you - if you're not an employee (which your contract excerpts definitely point to you not being) then it will be you personally that is liable for any mistakes that you make whilst undertaking your duties and that's likely to cost you a hell of a lot more than you are getting paid if you end up getting sued.

faringdon said:

Ive never been a "limited company" before, (if thats even the right term here?)  and dont have a clue what's involved.

You can't "be" a limited company, you can set one up. And why are you even throwing limited companies into the mix, I can't see that it was mentioned previously in the topic? Is the contract between you personally and the "employing" company (if so then you are a self-employed consultant and will need to register with HMRC as you're going to be over the £1,000 threshold for registering).

MeteredOut

faringdon said:

N0 i havent registered as self employed. I dont know how to do that.
So are you saying i will not be payed?, because i dont have the means to do an invoice?, ie, i am not a limited company or something?
Do you think i should leave immediately, on the basis i will not be payed?

Cant i just give them my bank details and request they pay  into my bank?

It was one month because they  were stuck...and wanted to give me a month to see if i could fix their problem...and yes i have now fixed it....and   presumably they are just keeping me now because they had offered me a months contract with 2 weeks notice, so its not worth giving me notice now, because in two weeks from now we will be at the one month point....i guess.

Without wanting to worry you further, this is sounding increasingly like disguised employment, where the employer saves on NI, but where the contractor can become liable if HMRC investigate. Although, they are typically more interested in those working through Ltd companies. Do you have a clearly defined statement of what you are delivering in the contract or are they just paying for your time?

(read into IR35 if you want to get technical).

But to answer your question, google "invoice template" and use one of those - don't pay for anything - there are plenty of free examples you can copy.

NorthYorkie

It is important that you should not enter into any contract where you do not understand its full implications. If you are unwilling or unable to afford professionally qualified advice, then you must undertake some research yourself. As a start you need to be sure of your tax position. The use of the term 'consultancy' does not automatically mean that you are self-employed; the question is whether you are caught  by the legislation which is colloquially known as 'IR35'.
It seems that you are likely to be involved in such 'engagements' in the future, so that it is all the more important that you should fully understand their potential consequences.