Paralegal invoice template

How do paralegals usually invoice?

Freelance paralegals invoice law firms by the hour or day for document review, bundles and overflow work, quoting the firm's matter reference and getting paid on 30 day terms once the firm bills its client. Paralegals serving the public directly offer fixed fees for wills, lasting powers of attorney and tribunal paperwork, paid up front. The invoice must not describe reserved legal activities the paralegal is not authorised to do.

Paralegals in this example give the customer 30 days to pay. Hourly rates run from £30 to £70. A full day is typically £220 to £450.

What should a paralegal put on an invoice?

Beyond the legal basics, paralegals should:

• Quote the firm's matter reference and the supervising fee earner on each line.
• Record hours by date and task; firms need to reconcile them with their own time records.
• For direct clients, take payment before starting fixed-fee document work.
• Describe work accurately and avoid implying you are a solicitor or doing reserved activities.

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 paralegals 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 paralegals is usually “Lawyer or legal services” 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.