Financial monitoring guidance

Following your Digital Inclusion Fund award, the council will monitor the use and success of the funding.

As a part of your project proposal, 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 your suppliers at the time of purchase, when the transaction is fresh in your mind, 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 – 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.