Who Should Read This?
- UK-based businesses making regular payments to overseas suppliers or partners
- Finance teams managing international invoices and reconciliation
- Individuals sending large or regular payments abroad
- Anyone seeking to improve transparency and tracking of cross-border transfers
Why It’s Worth Reading
- Understand the purpose and importance of remittance advice in international transfers
- Discover how it supports accounting, compliance, and supplier relationships
- Learn how Indigo FX can streamline your payment process with clear documentation
What You’ll Learn
- What remittance advice is and when it’s needed
- How it helps businesses and individuals with record-keeping and reconciliation
- Whether it’s a legal requirement or just best practice
- How Indigo FX can support you with professional, compliant documentation
What Is Remittance Advice?
A remittance advice is a document sent by a payer to a payee confirming that a payment has been made. It typically includes key transaction details like:
- Payment amount and date
- Payment method and reference number
- Invoice number(s) the payment relates to
- Payer and payee details
While it is not a legally required document in most scenarios, it plays a crucial role in clarifying payments, particularly in business-to-business (B2B) transactions and international transfers.
When and Why Is It Used?
In the UK, remittance advice is widely used by businesses to:
- Let suppliers know which invoices have been paid
- Reduce confusion or disputes about payments
- Provide a paper trail for accounting and audits
- Help overseas recipients match incoming funds to outstanding invoices – especially when exchange rates or intermediary banks are involved
For international payments, where confirmation from the receiving bank may be delayed or opaque, a remittance advice is often essential for tracking and reconciliation.
At Indigo FX, our clients often use remittance advice when sending funds to:
- Overseas manufacturers or vendors
- International payroll recipients
- Freelancers or remote teams abroad
- Investment accounts or overseas charities
Do Individuals Need Remittance Advice?
If you’re sending money to family or friends abroad, remittance advice is not necessary — but if you’re transferring funds for legal, tax, or property-related reasons, having proof of payment with clear documentation is incredibly helpful.
It becomes especially valuable if:
- You’re transferring a large sum
- You need to prove the payment for HMRC, mortgage lenders, or solicitors
- The recipient’s bank requests additional payment references
Is It a Legal Requirement in the UK?
No — remittance advice is not a legal requirement, but in some industries (especially finance, legal, construction, and import/export), it is considered best practice. For internal auditing, compliance, and record-keeping, remittance advice is often expected or even requested by counterparties.
How Indigo FX Can Help
We provide automated, professional remittance advice for every transaction — no matter how large or small. When you make a payment through Indigo FX, you receive:
- Instant confirmation
- Full remittance breakdown
- Transaction tracking and history
- Direct support from your personal account manager
Our platform is built to give you clarity, transparency, and control over your international transfers — so you never have to chase or guess where your money has gone.
If you’re managing regular or high-value international payments, yes — remittance advice is a smart, simple way to keep things clear and professional. It’s not just about proof of payment — it’s about smoother business relationships, fewer headaches, and stronger records.
Need help setting up efficient, secure, and fully documented transfers? Contact Indigo FX today.