my client runs a teaching business and the description on the invoice usually says "Tuition". One of my client's customers has now asked if it would be possible to replace "Tuition" with "Consultancy"; I am hesitant to do this. Please, can you advise whether the customer's request to change the description can be complied with, or whether my client might face potential problems further down the line (and what these problems might be)?
Thanks for the quick response, Joanne!
Yes, have already asked: it was specifically a lesson / tuition.
I would love to explain to my client that "Lesson" or "Tuition" is what needs to go on the invoice, but can't come up with the rationale / reason for this (it's a feeling).
Could you please help me understand, so that I can give my client a reasonable explanation?
Many thanks!
Hi Ros
You have to be a cynic in this business and question everything. If it doesnt look or smell right then all the more reason to question it.
The invoices/receipts you issue should be very specific as to what service or goods have been sold for traceability and accountability purposes, so they need a clear description of what you are invoicing for.
So ideally if they had a lesson then the invoice/receipt should show - the type of lesson, the date (and maybe even time), rate charged etc. If a piano lesson it should state exactly that, if its a singing lesson - state so, worked with some professional musicians - state clearly and without ambiguity what she did. The invoice would also reflect what service her business offers and not show she is offering anything else.
As well as ensuring such reduces the possibilities of issues for tax purposes it also reduces the possibility of an invoice being disputed - that document needs to be clear for in the event of court cases if chasing debt.
Besides she cannot issue an invoice for 'consulting' work when she does not offer such work.
You have to ask yourself why the customer is asking for it to be changed. Suspicion is (given she isnt offering consultancy work and without any reasonably good reason/requirement) that something dodgy is going on. Think of yourself in the shoes of that person's bookkeeper/Accountant and then having an invoice for 'consultancy' - makes it look potentially like its a valid business expense. Any likelihood of that customer putting that invoice through as a business expense means he is committing money laundering - imprisonable/fines apply!
I will only briefly suggest fraud!
What other reason is there for such a request - I personally can think of non!
HTH
__________________
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
