INVOICING GUIDE

What a UK invoice must include, including VAT invoice rules.

An invoice is more than a request for money. It is a record your customer relies on, and if you are VAT registered it is the document that lets them reclaim VAT. This guide sets out what every invoice needs, what a VAT invoice adds, and how to turn that into a template you can reuse.

Figures for the 2026/27 tax year · Last reviewed 21/10/2026

The details every UK invoice needs

These apply whether or not you are VAT registered. GOV.UK says every invoice must include:

A unique invoice number. No two invoices should share one.
Your details. Your business name, address and contact information.
Your customer's details. Their company name and address.
A clear description. What you are charging for, in words the customer will recognise.
The supply date. The date you provided the goods or service.
The invoice date. The date you issue it, which can differ from the supply date.
The amounts. What you are charging for each item, the VAT amount if there is any, and the total owed.

Most businesses also add when payment is due and how to pay. That is not on the list above, but it saves a lot of chasing.

Extra details for sole traders

If you trade as a sole trader, the invoice must show your own name as well as any business name you use. If you use a business name, you must also give an address where legal documents can be delivered to you.

Extra details for limited companies

A limited company must use its full name exactly as it appears on its certificate of incorporation. You do not have to name your directors on an invoice. But if you choose to name any of them, you must name all of them.

Company letters, order forms and websites have their own disclosure rules, such as the registered number and registered office address. Many companies put the same details on their invoices so all their paperwork matches.

When you need a VAT invoice instead

If you and your customer are both VAT registered, you must give them a VAT invoice. A VAT invoice carries more information than an ordinary one, because your customer will use it to reclaim the VAT they paid you.

The standard VAT rate is 20%. There is also a reduced rate of 5% and a zero rate of 0% for certain goods and services. Your invoice must show which rate applies to each line.

You do not always have to issue a VAT invoice to a registered customer. HMRC's record keeping notice lists some cases, including:

Your invoice is only for exempt or zero-rated sales within the UK
Your customer runs a self-billing arrangement, so they produce the invoice
You sell goods under one of the second-hand margin schemes
You give away goods on which VAT is due

Retailers selling to the public do not need to issue a VAT invoice unless the customer asks for one.

What a full VAT invoice must show

On top of the basics, a full VAT invoice needs the following, set out in VAT Notice 700/21:

A sequential number. It can come from one or more series, but it must identify the invoice uniquely.
The time of supply. This is the tax point. If the issue date is different, show that too.
Your VAT registration number, alongside your name and address.
Your customer's name and address.
Line details. For each item, a description, the quantity, the unit price, the VAT rate and the amount excluding VAT.
Totals. The total excluding VAT, the rate of any cash discount offered, and the total VAT.

Line amounts and the total excluding VAT can be shown in any currency. The total VAT must always be shown in sterling.

Since March 2024 you no longer need to state the reason a line is zero-rated or exempt. Margin scheme and reverse charge sales have their own wording rules, so check the specific guidance if you make those kinds of supply.

A worked example

This example is made up to show the layout. Imagine a VAT-registered decorator invoicing a VAT-registered shop for two days of painting at £200 a day, plus £150 of paint and materials, all at the standard rate.

Each line shows the description, quantity, unit price, 20% rate and net amount: £400 for labour and £150 for materials. The total excluding VAT is £550. VAT at 20% is £110. The total due is £660.

The invoice also carries the decorator's VAT number, a sequential invoice number, the date the work was finished as the time of supply, the issue date and the shop's name and address.

Simplified VAT invoices for £250 or less

If the total charge is £250 or less including VAT, you can issue a simplified invoice instead. It only needs to show:

Your name, address and VAT registration number
The time of supply
A description of the goods or services
For each VAT rate, the total including VAT and the rate charged

So a £96 charge at 20% could simply show £96 including VAT at 20%. Exempt supplies must not go on a simplified invoice.

For charges over £250, a customer who asks for a VAT invoice must get either a full VAT invoice or a modified VAT invoice. A modified invoice shows VAT-inclusive values rather than VAT-exclusive ones.

Timing rules: issuing and getting paid

Normally you must issue a VAT invoice within 30 days of the date you make the supply. An invoice raised late can also put the VAT in the wrong return.

You can set your own payment terms, such as payment upfront or a discount for paying early. If you do not agree a payment date, GOV.UK says the customer must pay within 30 days of getting your invoice or the goods or service. You also have the right to charge interest on late payment, though you can choose not to.

Put the due date on the invoice itself. A customer cannot argue about terms they could see on the page.

How to build your invoice template

A good template means you only fill in the parts that change. Set it up once, in this order:

Header. Your business name, address, contact details and, if registered, your VAT number. Companies use their full registered name.
Invoice block. Invoice number, invoice date and supply date, each clearly labelled.
Customer block. Their name and address. Add their purchase order number if they use one.
Line table. Columns for description, quantity, unit price, VAT rate and net amount.
Totals. Net total, VAT total in sterling, and the amount due.
Payment block. Due date, payment terms and your bank details.

Numbering is where homemade templates usually go wrong. If you copy last month's invoice and forget to change the number, you end up with duplicates and gaps. Invoicing software numbers each invoice for you, posts it straight to your sales ledger and calculates VAT per line, which removes most of these errors.

Keeping copies and fixing mistakes

VAT-registered businesses must keep a copy of every VAT invoice they issue, and keep business records for VAT for at least 6 years.

Do not edit or delete an invoice once it has gone to the customer. If something is wrong, issue a credit note against it and then a new invoice. That keeps your numbering intact and leaves a clear trail for your VAT return.

Common invoicing mistakes

Leaving off your VAT number, which can stop your customer reclaiming the VAT
Duplicate or skipped invoice numbers from copied templates
Showing only a total with no VAT breakdown on a charge over £250
Using a trading name with no legal name, or no address for legal documents
Issuing the invoice weeks after the work, so the VAT lands in the wrong period
No due date, so the default 30 days applies and nobody chases

Most of these show up when invoices are raised in a word processor and never checked against the books. When every sale is recorded and matched to a bank receipt as it happens, gaps and unpaid invoices are obvious straight away.