The short version: A proforma invoice is a preliminary bill you send before completing work or delivering goods. It shows what you expect to charge, but it’s not a final invoice and doesn’t create a legal obligation to pay.
When would you use one?
When you’re quoting for work but don’t know the final amount yet. When a client needs to get budget approval before commissioning you. When goods are being shipped internationally and customs need to see expected values.
Is it binding?
No. A proforma invoice is essentially an estimate or quote. The client isn’t obligated to pay it, and you can change the final amount based on actual work done.
What happens next?
Once the work is complete or goods are delivered, you issue a proper invoice with the actual amount. That’s the document that creates the payment obligation and goes in your accounts.
Does it affect your tax?
Proforma invoices don’t count as income. Only actual invoices for completed work should be recorded in your accounts and reported to HMRC.
Not sure about invoicing procedures? We can help you get your admin in order.
