App developer invoice template

How do app developers usually invoice?

App developers invoice fixed fees per milestone from a scoped build plan, with a deposit of around 40% before design starts and payments on each milestone demo, because a mobile app cannot be partially launched. Store submission, backend hosting and third-party SDKs are separate lines. Post-launch support is sold as a monthly retainer with an hours allowance and response times stated.

App developers in this example give the customer 30 days to pay, after a 40% deposit taken before the work starts. Hourly rates run from £55 to £120. A full day is typically £450 to £900.

What should a app developer put on an invoice?

Beyond the legal basics, app developers should:

• Tie each invoice to a milestone demonstrated to the client, with the features listed.
• Separate store submission, backend costs and SDK licences from development.
• State who owns the developer accounts and that source code transfers on final payment.
• For support retainers, list the hours included and the response time committed.

Every UK invoice, whatever the trade, must also show:

• a unique, sequential invoice number
• your business name and address (and company number if you trade as a limited company)
• the client’s name and address
• the invoice date and, for VAT invoices, the date of supply if different
• a clear description of each item of work or goods
• the amount due and when it must be paid
• your VAT number, the VAT rate per line and the VAT total, if you are VAT registered

Do app developers charge VAT?

You only charge VAT once registered, which is compulsory when taxable turnover passes £90,000 in any rolling 12 months. Below that, show no VAT line and no VAT number. Once registered, digital and IT services are standard rated at 20% for UK clients; services to business clients outside the UK are generally outside the scope of UK VAT, so note that on the invoice and charge none.

On the Flat Rate Scheme the sector for app developers is usually “Computer and IT consultancy or data processing” at 14.5% of VAT-inclusive turnover, with a 1% discount in the first year of registration. If you spend little on goods you may be a limited cost trader and have to use 16.5% instead. The scheme suits businesses with few VAT-able costs; check it against the standard method with the VAT calculator before joining.