a clear description of what you’re charging for.the company name and address of the customer you’re invoicing.your company name, address and contact information.Therefore, a private invoice should include the following points: Although there are no formal requirements for this in private transport, a private invoice should contain certain elements in order to justify the claim being presented. it is a claim for the issuer to the recipient. However, from a legal perspective, each invoice is a request for payment, i.e. Unlike invoices from companies, invoices from private individuals are not bound by formal requirements and may vary as much as you like. As a private individual, you do not need to contact the tax authorities in advance in order to be able to issue a private invoice. not in the context of a trade or professional activity, does not generally have to comply with regulations. Since the sale price of the item is likely to be less than the original purchase price, a taxable profit was not incurred.Īn invoice issued by a private individual, i.e. However, if you resell a used item, like a vehicle or mobile phone, you can issue a private invoice without worrying about any consequences. This often happens when a private individual sells items or performs services fairly regularly.Īdditionally, in principle profits from private transactions are subject to taxation. For a private individual, issuing invoices can have tax consequences – for example, if the tax authorities decide to categorise your transactions as commercial rather than private. In certain cases, for example, a business owner (company, sole trader) must issue an invoice for goods or services to another trader or legal entity. HMRC are only interested in invoices from business owners. It’s easy to wonder why an individual would bother issuing an invoice, or even if they are permitted to do so. Many companies also require invoices when purchasing a product or service from a private individual. If you were to sell your car, or charge for a non-professional service, the person making a purchase from you may require a personal invoice. Even as a private individual, creating an invoice is no problem.
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