UK invoice template

What a UK invoice must show if you are not VAT-registered

Any business invoice in the UK must show a unique ID number, your name, address and contact details, and the customer’s name and address. It also needs a clear description, the supply date, the invoice date, the amounts charged and the total owed.

If you are a sole trader, the invoice must also show your name and any business name you use. If you use a business name, it must show an address where legal documents can be delivered to you.

Only a VAT-registered person can issue a VAT invoice. An invoice from a business that is not registered is a plain invoice, not a VAT invoice.

You need to register for VAT when your taxable turnover passes £90,000 over the last 12 months, or when you expect it to pass £90,000 in the next 30 days alone. You can also register voluntarily below £90,000.

When you need a VAT invoice

If you and your customer are both VAT registered, you must use VAT invoices. You do not have to give one for zero-rated supplies, or to customers who are not VAT registered. Normally you issue it within 30 days of the tax point.

A full VAT invoice adds your VAT number, the tax point, and the date of issue where that is different. For each line it shows the quantity or extent, the VAT rate and the amount excluding VAT. It also shows the total excluding VAT, any cash discount rate, and the total VAT in sterling. A unit price is usually needed (an hourly rate counts).

If the supply is £250 or less and the customer agrees, you can issue a simplified VAT invoice. An emailed PDF is accepted if it holds everything a paper VAT invoice must. A pro-forma invoice cannot be used to reclaim VAT, so HMRC says to mark it “this is not a VAT invoice”.

CIS and the construction reverse charge

Under the Construction Industry Scheme (CIS), a contractor deducts 20% from a registered subcontractor it can verify, and 30% if the subcontractor is not registered or cannot be verified. Nothing is deducted if you have gross payment status.

CIS deductions are not taken from the VAT on your invoice, or from plant hired for the job or materials you paid for. The contractor must give you a payment and deduction statement within 14 days of the end of each tax month.

The VAT domestic reverse charge for construction has applied since 1 March 2021. It applies when you and your customer are both VAT registered, the payment is reported under CIS, the service is standard- or reduced-rated, the customer has not confirmed in writing that it is an end user or intermediary supplier, and you are not an employment business supplying staff or workers.

A reverse-charge invoice shows everything a VAT invoice needs. It says the reverse charge applies and the customer must account for the VAT. State the VAT due, but do not add it to the amount you charge. The law requires the reference “reverse charge”. Whether it applies to a job is a question about your own position.

Late payment

If no payment date is agreed, payment is late 30 days after the customer gets your invoice, or after you deliver, whichever is later.

On a late business payment you can claim statutory interest of 8% plus the Bank of England base rate, unless the contract sets a different rate. You can also claim a fixed sum once per late payment: £40 up to £999.99, £70 from £1,000 to £9,999.99, and £100 for £10,000 or more.

The free generator above sets up a UK invoice with the right labels and currency.

Can I invoice if I’m not VAT registered?

Yes. Show the details every business invoice needs, including your own name and any business name if you are a sole trader. Only a VAT-registered person can issue a VAT invoice.

When do I have to register for VAT?

When your taxable turnover passes £90,000 over the last 12 months, or you expect it to pass £90,000 in the next 30 days alone. You can register voluntarily below that.

Can I charge interest on a late invoice?

On a late payment between businesses, you can claim statutory interest of 8% plus the Bank of England base rate, and a fixed £40, £70 or £100 depending on the debt. You cannot claim interest if the contract sets a different rate.