Financial monitoring guidance

Following your Social Value Fund award, the council will monitor the use and success of the funding. We ask that you complete both financial and performance reporting in accordance with the timetable set out below.

As a part of your claim, it is expected that you provide invoices to cover agreed expenditure for the project.

Each financial monitoring return must detail how much of the total award have you spent.

When completing your return, the invoices must use the same item descriptions as used in your application.

Ask at the time of purchase when the transaction is fresh in your mind and your suppliers, to avoid delay.

Invoices - what you must include

An invoice is a time-stamped commercial document that itemises and records a transaction between a buyer and a seller. It provides a list of goods sent or services provided, with a statement of the sum due for these.

Your invoice must include:

  • a unique identification number
  • your company name, address and contact information
  • the company name and address of the customer you’re invoicing
  • a clear description of what you’re charging for
  • the date the goods or service were provided (supply date)
  • the date of the invoice itself
  • the amount(s) being charged
  • VAT amount if applicable
  • the total amount owed

Sole trader invoices

If you’re a sole trader, the invoice must also include:

  • your name and any business name being used
  • an address where any legal documents can be delivered to you if you are using a business name

Limited company invoices

If your company is a limited company, you must include the full company name as it appears on the certificate of incorporation.

If you decide to put names of your directors on your invoices, you must include the names of all directors.

VAT invoices

A VAT invoice should be used where the supplier is VAT registered.

These include more information than non-VAT invoices.

What is a VAT invoice?

There are 3 types of invoices recognised by HM Revenue and Customs (HMRC):

  • full VAT invoices are used for most transactions
  • simplified invoices for supplies under £250
  • receipts

Elements which must be on an invoice

invoice information

full invoice

simplified invoice

receipts

  • document name

yes

yes

sometimes

  • unique invoice number that follows on from the last invoice

yes

yes

no

  • supplier’s business name

yes

yes

yes

  • supplier’s business address

yes

yes

sometimes

  • supplier VAT number

yes

yes

yes

  • date

yes

no

no

  • the tax point (or ‘time of supply’) if this is different from the invoice date

yes

yes

yes

  • customer’s name or trading name, and address

yes

no

no

  • description of the goods or services

yes

yes

sometimes

  • total amount excluding VAT

yes

no

sometimes

  • total amount of VAT

yes

no

sometimes

  • price per item, excluding VAT

yes

no

no

  • quantity of each type of item

yes

no

no

  • Rate of any discount per item

yes

no

no

  • rate of VAT charged per item – if an item is exempt or zero-rated make clear no VAT on these items

yes

yes (1)

yes

  • total amount including VAT

no

yes (1)

yes

What is not an invoice

Quotes – are estimated prices for goods or services. They are a commitment to a price not a confirmation of sale. They do not confirm actual VAT paid, only the VAT implication of this transaction should you wish to go ahead and place the order.

Proformas

Proformas – are like quotes and indicate a price for goods or services and usually include the VAT element. Some buyers insist on a proforma invoice before payment, which suits suppliers who won’t issue tax invoices until goods are shipped or paid for.

Orders

Orders confirmations or acknowledgements are also not receipts. They may provide some evidence of a business spend, but they don’t provide enough evidence to be able to reclaim the VAT.

Quotes, proforma invoices, and orders do not represent completed transactions or a commitment to pay for goods or services. these happen before the sale takes place and could change.  Always ask the supplier for the receipt or invoice.

Invoices are issued after the sale takes place and confirm the obligation to pay for goods and services. The invoice will confirm the amount due and VAT element of the sale.  Always ask the supplier for the VAT receipt or invoice if you do not have the right document.

Salaries

Where your project includes paying people salaries either as a whole or part you must supply evidence of this payment. This may include copies of a payslip or an invoice from the person supplying the service. Invoices must include the details outlined above.

Please show the hourly rate and hours worked to agree the total claimed.