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Most trades and services do not itemise their charges ( i e Parts & Labour) when submitting customers with an invoice. Plumbers, Decorators, Electricians….all operate the same. I’ve always, without exception, itemised not only materials and labour but other ancillary items in order to comply with VAT regulations.
My question : Is it really necessary to itemise in,such detail, when, in essence, all the customer requires is a final price and receipt for work done?
Re: Do you itemise your charges if VAT registered?
out of courtesy we list everything that the cust has paid for
i.e
callout ,labour ,parts VAT, grand totalRe: Do you itemise your charges if VAT registered?
Lawrence wrote:out of courtesy we list everything that the cust has paid for
That is an interesting take Lawrence, “courtesy” hmm? Yes I am with you there. But my question is asking more toward the legal aspect of invoicing. HMRC insist all VAT invoices be itemised but how does it stand up in court if a VAT registered company just lists a total unitemised price plus the 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} VAT element?
Re: Do you itemise your charges if VAT registered?
There is no legal requirement to issue a VAT invoice unless the customer is VAT registered. Even when you do, there is no need for it to be itemised (ie broken down by parts & labour), as long as it describes what the charge is for (eg repair washing machine).
The level of detail required is less if the total bill is £250 or less. In these cases, total payment and the VAT rate would be enough, plus of course date, business name & address and VAT registration number.
However, I do think showing the amount excluding VAT, the VAT amount and the total separately helps to make the charges look more reasonable. Itemising the parts and labour should also help customers appreciate the value for money they have received.
Re: Do you itemise your charges if VAT registered?
I’ve always listed everything separate on my invoices, Parts, labour, VAT and Total. I’ve always had my invoices printed this way.
I always price the job at the customers the same way explaining all the charges verbally. Somehow it makes me feel a little better telling them that i’m not getting all the money.
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