Crediting invoices

Steve sands

New member
Feb 3, 2020

my company currently have a very complex and long process for raising credit notes. It can take weeks sometimes. two of the main issues are re-issuing an invoice to another entity or a third party paying directly.

the invoice has to go back to our on boarding team to check why details not correct in first instance , then to the risk and compliance officer and finally to my FD to get final approval. This is after we’ve gone back to the client with a list of questions as to why we should change the entity name., such as the relationship with original contracting entity, details of company registration etc.

we even have to credit and re-issue an invoice if a purchase order is incorrect because we are told not to adjust an invoice in any way after it’s raised.

is there a guide to a simple credit and re-issue process somewhere that HMRC or auditors will approve. My company fears all this detail is needed for an audit trail and listens to their tax expert to much!


Staff member
May 13, 2019
Hello Steve, I appreciate you may find your process long winded however there is no definitive rules from HMRC that we are aware of how to deal with your issue. If this is a regular occurrence, then it might suggest you may have a quality control issue.

In our experience the best practice is to cancel the original via a credit note and reissue. It's not illegal, per se, to amend an invoice that you've raised. However, it does help protect you legally from a customer and HMRC point of view by changing your own version of the invoice without cancelling the original version. This may have legal, VAT or tax implication when doing so that might be missed.

If you ever need to use pre-litigation debt recovery or if there is a legal dispute, you would be compelled to give all invoices related data to the debt. If your PDF and invoice number contradict your accounting system or the one your customer presents, then you are more likely to fail to recover your money or achieve a successful outcome.

Thank you for posting your issue!