Proforma invoices, credit notes and other invoice types

A proforma invoice shows what an invoice will look like before the sale goes ahead. Businesses use one to ask for payment before they supply anything, or to give a customer the expected cost in invoice form.

HMRC says a proforma invoice cannot be used to reclaim VAT, even if it contains every detail of a VAT invoice, so it should be clearly marked "this is not a VAT invoice". Once you supply the goods or services, or are paid, you must send a proper invoice (VAT Notice 700, paragraph 17.3).

A credit note reduces or cancels an invoice you have already sent, for example after a mistake, an overcharge, returned goods or an agreed discount. Rather than editing or deleting the original invoice, send a credit note that refers to it.

If you are VAT registered and the credit changes the VAT, HMRC says the credit note must reflect a genuine mistake, overcharge or agreed reduction, and give the customer a real right to the money, as a refund or against future supplies. It must show (VAT Notice 700, paragraph 18.2.3):

• its own identifying number and date of issue
• your name, address and VAT registration number
• your customer's name and address
• a description of the goods or services, with the quantity and amount credited for each
• the total amount credited, excluding VAT
• the rate and amount of VAT credited
• the number and date of the original VAT invoice

A credit note that does not adjust VAT should say "This is not a credit note for VAT". If you are not VAT registered, good practice is still to give the credit note its own number, refer to the original invoice and say why you are crediting it.

A debit note is the opposite of a credit note: it increases the amount owed on an invoice you have already sent, for example when you undercharged. Like a credit note, it should refer to the original invoice and say why.

A deposit invoice asks for money up front against a larger job. Show the deposit, the total value of the job and the balance still to be invoiced, so the final invoice adds up. If you are VAT registered, ask your accountant how VAT applies to the deposit.

A statement lists the invoices, payments and credit notes for a client over a period, with the balance owed. It is a reminder of where things stand, not an invoice, and InfinitInvoice marks it "This statement is for information. It is not a VAT invoice.". Recurring statements are included on Business Pro and above.

• Quote template: a priced offer before the work starts.
• Receipt template: confirms you have been paid.
• VAT invoice requirements: full, simplified and modified VAT invoices.
• CIS invoice template: construction subcontractors and the reverse charge.
• Invoice template: the everyday invoice, with every field GOV.UK lists (what invoices must include).

When you create a document, you choose what kind it is, and InfinitInvoice adds the fields and wording that kind needs. Any type works with any of the invoice designs.