Courier invoice template

How do couriers usually invoice?

Couriers invoice per job for same-day work, priced by distance and vehicle size, and per route or per parcel for multi-drop contracts, invoicing weekly or fortnightly to the courier network and monthly to direct business customers on 14 day terms. Waiting time beyond the included period and fuel surcharges are separate lines. Owner drivers on contract often receive a self-billing statement instead of raising their own invoice.

Couriers in this example give the customer 14 days to pay. Hourly rates run from £18 to £30. A full day is typically £150 to £260.

What should a courier put on an invoice?

Beyond the legal basics, couriers should:

• List each job with the date, collection and delivery points and the vehicle size.
• Show waiting time and surcharges separately with the rate per minute or per job.
• If the network self-bills, check the statement against your own record rather than invoicing twice.
• For regular customers, invoice monthly with a job list attached.

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 couriers charge VAT?

Courier services are standard rated at 20% once you are VAT registered, which is compulsory above £90,000 turnover. Self-employed couriers on delivery contracts are often below it and charge no VAT; those running several vans are above it. Deliveries that start or end outside the UK can be zero rated, so check the rules for international work.

On the Flat Rate Scheme the sector for couriers is usually “Transport or storage, including couriers, freight, removals and taxis” at 10% 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.