How to invoice in the United Kingdom

What every UK invoice needs

• A unique invoice number.
• Your business name, address and contact details.
• Your client's name and address.
• The invoice date and the date of supply, if different.
• A clear description of what you are charging for.
• The amount, the total due and your payment terms.

Limited companies must also show the company's registered name, registered number, place of registration and registered office address. Sole traders trading under a business name must show their own name too, plus an address where documents can be served.

VAT invoices

You must register for VAT once your taxable turnover goes over £90,000 in any rolling 12 months, or if you expect to exceed it in the next 30 days alone. You can register voluntarily below that. If you are not VAT registered, you must not charge VAT or show a VAT amount.

Once registered, you normally issue VAT invoices to business customers within 30 days of the supply. A full VAT invoice shows, in addition to the basics:

• your VAT registration number;
• the time of supply (tax point), if different from the invoice date;
• for each line: quantity, unit price excluding VAT and the VAT rate;
• the total excluding VAT, the total VAT, and any discount.

For sales of £250 or less including VAT, you can issue a simplified invoice. The main VAT rates are 20% (standard), 5% (reduced) and 0% (zero rate). If you sell at different rates on one invoice, switch on "Different tax rate per line" in the generator so VAT is shown per rate.

Late payment: interest and compensation

Under the Late Payment of Commercial Debts (Interest) Act, when another business pays you late you can claim statutory interest of 8% plus the Bank of England base rate, plus fixed compensation for the cost of chasing the debt: £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more. Unless you agreed otherwise, payment is due 30 days after the customer receives the invoice. This applies to business-to-business debts, not to consumers.

Making Tax Digital and e-invoicing

All VAT-registered businesses already keep digital VAT records and file VAT returns through compatible software under Making Tax Digital. From 6 April 2026, Making Tax Digital for Income Tax also applies to sole traders and landlords with qualifying income over £50,000, falling to £30,000 in April 2027 and £20,000 in April 2028.

The government has also confirmed that all VAT invoices will have to be e-invoices from April 2029: structured data sent between systems, not a PDF. Until then, PDF invoices like the ones you make here remain fine.

Keeping records

Keep VAT records, including copies of the invoices you issue, for at least six years. Sole traders must keep records for at least five years after the 31 January Self Assessment deadline for the tax year. Export a backup from My invoices regularly.

Official sources

• GOV.UK – Invoicing and taking payment from customers
• GOV.UK – VAT registration
• GOV.UK – Late commercial payments: charging interest and debt recovery
• GOV.UK – Making Tax Digital