Adding taxes and discounts
Apply tax line by line and take a discount off the whole invoice. CoreHue does the sums and shows your client exactly how the total was reached.
Adding tax to a line
- Set up the rates you charge once, under Payments → Settings → Tax rates. See Setting up tax rates.
- In the invoice editor, use the Tax column on each line to pick a rate, or leave it on No Tax.
Tax is per line, so one invoice can mix taxed and untaxed work, like a taxed session fee and an untaxed expense you're passing on. A rate marked as default is applied to new lines automatically.
You can also attach a tax rate to a booking service, so the invoices from those bookings carry the right tax without you thinking about it. See Pricing, deposits and payment deadlines.
Tax on top or included
Each rate has a Price includes tax setting:
| Setting | A 100 line at 20% | Your client pays |
|---|---|---|
| Off (tax added on top) | 100 + 20 tax | 120 |
| On (price already includes tax) | 83.33 + 16.67 tax | 100 |
Get this wrong and you either undercharge by the tax or bill more than you quoted, so check it when you create a rate.
Adding a discount
- Under the totals, choose + Add Discount.
- Pick Percentage (%) or Fixed Amount and enter the value.
- Add a Description, like "Returning client" or "Early payment discount".
- Choose Add discount.
An invoice carries one discount, so the link disappears once you've added it. To change it, remove it with the small cross and add a new one.
A percentage can't go over 100%, and a fixed amount can't go over the subtotal, so the total never goes negative. A full 100% discount is allowed, which is how you send a complimentary invoice that still reads as a proper document.
Need to reduce two things separately? Adjust the line prices instead. It's clearer for your client anyway.
How the total is worked out
- The lines are added up.
- Tax is worked out on each line's full price.
- The discount comes off the total.
So a discount doesn't reduce the tax. Discount a 1,000 invoice by 100 and the tax is still worked out on 1,000. That surprises people who expect the discount to come off first, so it's worth knowing before you quote.
Each line is rounded on its own and the totals add up those rounded lines, so the figures on the invoice always add up to what your client is asked to pay.
What your client sees
The invoice lists each line with its amount, then the subtotal, the discount with its description, the tax, and the total. If you use more than one rate, each is shown so your client can see where every number came from.
What CoreHue won't do
CoreHue applies the rates you set and keeps a record. It doesn't tell you which taxes to charge, work out what you owe, or file anything. Tax rules vary by country and by the kind of work, so check with an accountant if you're unsure.
Frequently asked questions
Can I add more than one discount?
No. A CoreHue invoice takes one discount. If you need two reductions, lower the line prices or combine them into one discount with a clear description.
Can I discount just one line?
Not with the invoice discount, which applies to the whole invoice. Lower that line's price instead, and mention the reduction in its description.
Can I add tax to the whole invoice at once?
Not in one step, because tax is set per line. Turn on Set as default for the tax rate and it's applied to every new line. Otherwise, choose the rate on each line.