Non-unique invoice reference numbers

[cannon999]

I have been invoicing a party (for a period of time) not realising that invoice numbers generated by the app that I was using were not unique. They didn't really bat an eyelid.

The mistake became apparent when I started invoicing another party and they have pointed out that the second invoice I sent was not unique.

I am now wondering what to do with the invoices I have been sending in the previous financial year. If I ever get invesigated - would this be an issue?

[malvolio]

Strictly speaking, yes, it would. A legal invoice has various criteria, one of which is that it is uniquely identifiable, i.e. it has a unique reference number. Since you (presumably) have been paid your client is as negligent as you, but in real terms I don't suppose anyone will kick up much of a fuss - unless the VAT man has a look when he might get upset about the impact the "copy" invoice has on the VAT point and the relevant audit trail.

It's really not worth worrying about, but perhaps do some research on how invoices have to be constructed. What else have you got wrong?

[cannon999]

Strictly speaking, yes, it would. A legal invoice has various criteria, one of which is that it is uniquely identifiable, i.e. it has a unique reference number. Since you (presumably) have been paid your client is as negligent as you, but in real terms I don't suppose anyone will kick up much of a fuss - unless the VAT man has a look when he might get upset about the impact the "copy" invoice has on the VAT point and the relevant audit trail.

It's really not worth worrying about, but perhaps do some research on how invoices have to be constructed. What else have you got wrong?

I was using an invoicing app and just didn't realise that the invoice reference on it is THE invoice reference.. I was just putting down the client name. In the accounting system I have been recording unique references. I guess I got confused with personal banking. I do acknowledge this is an error on my part.

[ladymuck]

As long as you can reconcile everything correctly and put it right moving forward, you should be ok. I'd be inclined to internally reissue previous invoices so they had the same reference as you've entered into your accounting system. As an aside, what system are you using that doesn't directly issue invoices for you, requiring the need for an additional app?

Not sure whether an inspection would go to your clients to check the invoice on your books matches theirs - that's possibly something they'd do if they seriously suspected fraud / tax evasion, etc.

There are (legally?) defined criteria around invoices so make sure future ones are compliant with those.
Invoicing and taking payment from customers: Invoices - what they must include - GOV.UK

[cannon999]

As long as you can reconcile everything correctly and put it right moving forward, you should be ok. I'd be inclined to internally reissue previous invoices so they had the same reference as you've entered into your accounting system. As an aside, what system are you using that doesn't directly issue invoices for you, requiring the need for an additional app?

Not sure whether an inspection would go to your clients to check the invoice on your books matches theirs - that's possibly something they'd do if they seriously suspected fraud / tax evasion, etc.

There are (legally?) defined criteria around invoices so make sure future ones are compliant with those.
Invoicing and taking payment from customers: Invoices - what they must include - GOV.UK

Going forward I have started doing it correctly. This is because I have historically issued invoices through the banking app I am using rather than the accounting system. I will have a chat with the accountant next week to see what the best way is to correct this with their system in mind. It's kinda what I thought about too - if I edit the accounting system and all the invoices I have previously issued to align the invoice numbers - would this be legal? All the invoices have been paid of-course. They are just pdf documents, I could edit them. Or could I just rely on the accounting software (which has sequential numbers for the invoices) and just use those? And disregard whatever I have sent to the client?

[ladymuck]

Going forward I have started doing it correctly. This is because I have historically issued invoices through the banking app I am using rather than the accounting system. I will have a chat with the accountant next week to see what the best way is to correct this with their system in mind. It's kinda what I thought about too - if I edit the accounting system and all the invoices I have previously issued to align the invoice numbers - would this be legal? All the invoices have been paid of-course. They are just pdf documents, I could edit them. Or could I just rely on the accounting software (which has sequential numbers for the invoices) and just use those? And disregard whatever I have sent to the client?

I would go with your last option - don't update the accounting system but amend the paperwork to match it.

[cannon999]

I would go with your last option - don't update the accounting system but amend the paperwork to match it.

Thank you