Received a purchase order: what do I do next?

[MamaMary]

I recently did some freelance writing for a local authority and haver received a purchase order in the post for the work I did. I take it I am supposed to quote the PO no. on my invoice, yes? However what is confusing me is that there are two amounts of money on it - a gross amount and a net amount. The gross amount is larger as it includes VAT. Which amount do I quote on my invoice - how does the VAT thing work??

Sorry, clueless, never done this before

Did you write a proposal or agree the max cost or did you just give a.piece rate? Usually invoices are generated net then tax shown then the bottom line is the gross.

Does that make sense? I assume you are vat registered.

Hi,

blackteaplease is right. You prepare your invoice showing the Net amount (i.e. the amount excluding VAT) and then add VAT if you are VAT registered.

If you are not VAT registered you cannot charge VAT.

If you are not sure whether you should be VAT registered you should look it up on the HMRC website. Essentially there is a Turnover limit above which you must register for VAT.

With a Local Authority it is essential that you quote the Purchase Order number on your invoice, otherwise you wont get paid.

There are lots of examples of how to set out an Invoice on the Internet.

Just remember that you must declare any Income you receive from this work to HMRC on your Tax Return.

Thanks for your answers.

I am not VAT registered so I will charge the net amount, which is the amount we agreed on. I don't do a huge amount of this kind of work, and yes, I declare all freelance earnings on my tax return.

Thanks again - will have a look at some invoice templates online.

OP
in most stationers there are books of blank duplicate invoices
do not buy one - they look REALLY naff - but the layout is sound.
And yes, IGNORE VAT

have a look at my ebay me page for more information
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