Estate agent invoice template

How do estate agents usually invoice?

Estate agents invoice sales commission on completion, with the invoice sent to the seller's solicitor, who pays it from the sale proceeds on the day, so the terms are effectively on receipt. Lettings agents invoice landlords monthly by deducting fees from rent collected and issuing a statement that doubles as the invoice. Marketing extras such as photography and premium listings are invoiced up front.

Estate agents in this example are paid on receipt. Hourly rates run from £40 to £80.

What should a estate agent put on an invoice?

Beyond the legal basics, estate agents should:

• State the property, the sale price, the commission percentage and the completion date.
• Send the invoice to the seller's solicitor before completion so it is settled from proceeds.
• For lettings, issue a monthly statement showing rent received, fees deducted and the net paid.
• Show VAT separately; sellers often forget commission is quoted plus VAT.

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 estate agents 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, these services are standard rated at 20% for UK clients; services to business clients outside the UK are generally outside the scope of UK VAT.

On the Flat Rate Scheme the sector for estate agents is usually “Estate agency or property management services” at 12% 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.