Invoice & Business Glossary
Clear, simple definitions for invoicing and business terms. Perfect for UK freelancers, sole traders, and small business owners.
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CIS (Construction Industry Scheme)
CIS is a UK tax scheme where contractors deduct money from subcontractor payments and pass it to HMRC as advance tax payments.
Credit Note
A credit note is a document issued by a seller to reduce the amount a buyer owes, typically for returned goods, overcharges, or discounts.
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Proforma Invoice
A proforma invoice is a preliminary bill sent before goods are delivered or services are completed, showing the estimated costs and terms.
Purchase Order
A purchase order (PO) is a commercial document issued by a buyer to a seller, authorizing a purchase and specifying the items, quantities, and agreed prices.
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Remittance Advice
A remittance advice is a document sent by a payer to inform the recipient which invoices are being paid by a specific payment.
Retention
Retention is a percentage of a construction payment withheld by the client until the project is satisfactorily completed and defects are rectified.
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