VAT invoices for tailors and alterations shops: keeping them tidy
By Loomton · Updated
For a VAT-registered tailor or alterations shop, every invoice is a record your accountant will rely on. This guide is about keeping those records complete and consistent. For what the law requires, read HMRC's own guidance or ask your accountant: rules and rates change, and this is not tax advice.
Keep the same details on every invoice
- Your business name, address and VAT number
- A unique invoice number that follows on from the last one
- The date, and the client's name
- What was done: each garment or job, with its price
- The amount before VAT, the VAT, and the total
Number invoices without gaps
Use one running sequence and never reuse a number. If an invoice is wrong, cancel it with a short reason and issue a new one, rather than deleting it, so the sequence stays complete.
Deposits, refunds and credit notes
A deposit taken for a made-to-measure order should be recorded on the day it is paid, against that order. Ask your accountant how they want deposits treated for VAT.
When a price is reduced after the invoice, for example a refund for a late job, issue a credit note that refers to the original invoice, instead of changing the invoice.
Hand over clean records
Each month or quarter, export the invoices, credit notes and payments for the period and send them to your accountant or load them into your bookkeeping software. A consistent export saves hours of questions.
