Quick question: If a customer makes payment by BACS within a few hours after receiving a service (before an invoice could even be raised), would this still classify as quasi "immediate" payment or would an invoice still need to be raised in hindsight? As this regular customer is usually very quick to pay, the invoice would (in most cases) be raised after payment has already been received into the bank account.
Hi Ros Like I said in my other response If it has £ or p on it (or currency equiv) it needs a piece of paper as proof (in and out).
The invoice should be raised as the service has been provided, which naturally would be before they make payment, unless they of course pay in advance.
Issue an invoice and mark it as paid, or give them a receipt (details of service provided/date etc)
Think - how can you defend your client when they have an HMRC inspection if you have no bits of paper!
As suggested on my last response - what are they doing for the cash payments? How are you being made aware of them. HMRC love to prove cash being pocketed so they can fine the hell out of clients!
-- Edited by Cheshire on Wednesday 10th of January 2018 01:17:40 PM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Got it - yes, I supposed that invoicing would be the correct way to do it (as per your last response). Many thanks for the extremely quick & helpful answer, Joanne!
Best wishes
