Im not sure whether tagging this as accounting is the right thing to do but in the past whenever we do stuff for charities that we know they cant pay for we just zero off the invoice with a 100% discount.
I know that on Quickfile it does not let you do that so is it worth doing the following:
A: Create the invoice and then add a 100% credit note
B: Dont bother invoicing it at all
There’s 2 ways of looking at this:- (Services or Labour)
Firstly, whether you know right from the start, you will never get paid, or 100% you have no intention of charging them, or taking anything in a form of payment, even in the respect of goods, or services rendered back.
Secondly, whether it’s you, or you mean by “we” you and some employees.
If it’s just you and you have no intention of ever charging, or receiving any form of payment, and this doesn’t just mean money, can be goods received back or services etc, then I personally wouldn’t invoice.
If it’s you, and employees, or you may think, or have intention that some form of payment may be made, then yes invoice.
I would still invoice if using employees, even though its going to be a “Free Job”, you can generate a 100% credit note back.
For giving goods or items, I would always invoice, then allocate the 100% discount or credit note.
Personally, if this was work for a charity for which there is no expectation of payment, I would mark this as a donation and get a reduction in corporation tax at the year end.
It also presents a more ‘fair view’ of the business as you are recording work done as an expense; It’s an opportunity cost if nothing else.
It’s not for a charity but more for a non profit organisation. They run solely on donations and we know they need our work sometimes but can’t pay for it.
I just feel like I should still be invoicing them to keep track of the work the business is doing or has done