Baker invoice template

How do bakers usually invoice?

Bakers invoice wholesale customers such as cafes, farm shops and delis weekly with the quantities delivered each day, on 7 to 14 day terms, while market and direct sales are recorded as daily takings. Most bakery goods are zero rated, so a registered baker's invoice mixes zero rated bread and cakes with standard rated items like chocolate-covered biscuits and delivery charges. Standing orders are confirmed weekly and the invoice matches the delivery notes.

Bakers in this example give the customer 14 days to pay. Hourly rates run from £15 to £25. A full day is typically £140 to £220.

What should a baker put on an invoice?

Beyond the legal basics, bakers should:

• List products with quantities per day or per week so the cafe can match delivery notes.
• Mark the VAT rate per line; bread and plain cakes are zero rated, chocolate-covered items and delivery are not.
• Invoice weekly and state the standing order it relates to.
• Charge delivery as a separate standard rated line.

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 bakers charge VAT?

Bread, cakes and most cold bakery goods are zero rated for VAT, so a VAT-registered baker charges 0% on them to shops and cafes; hot takeaway food, confectionery such as chocolate-covered biscuits, and anything supplied as catering are standard rated at 20%. VAT registration is compulsory above £90,000 turnover. Below the threshold you charge no VAT at all, and unregistered bakers must not show a VAT rate on invoices.

On the Flat Rate Scheme the sector for bakers is usually “Manufacturing food” at 9% 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.