Sorry this may seem like a daft question but I can't seem to find the specific answer anywhere on the web:-
When raising an invoice to a person other than your client what should the invoice layout be:-
1) Addressed to client at his home address but marked payable by "third party"
2) Address to client but the actual address is the third parties?
3) Can the phrase "payable by third party" be located anywhere on the invoice?
Thanks
Related resources
Replies (2)
Please login or register to join the discussion.
Please clarify
It depends on the arrangements that have been made.
If you have done work for a client on his instructions, you address the invoice to him at his address. It is then up to him to arrange payment and if he does this by passing your invoice to a third party, it is not your concern and you would not put anything on the invoice about it. I don't know if you and the client are VAT registered, but he would need an invoice addressed to him if he wanted to reclaim input VAT on a business expense. For example, we often find that invoices addressed to an individual director for his personal tax return are paid out of his company's bank account.
If a third party has instructed you to do work for someone else, you address the invoice to the third party at their address. They would be unable to claim it as an expense of their business, as would the "client". For example, you might address an invoice to the husband if he has asked you to prepare tax returns for both himself and his wife.
May not be relevant but
If this relates to employee costs being paid for by the employer you may also need to consider the Benefit in Kind implications of which party the invoice is addressed to. Particularly regarding National Insurance.
I would issue the invoice directly to the party that you would be contacting if payment is not received to avoid any doubt in the future over who is liable. If this is the third party I would then include in the narrative the name of the client the work was for.