- Professional Invoicing
Create Professional Invoices for
Your UK Business
Generate HMRC-compliant invoices in seconds. Our tool handles VAT calculations, legal requirements, and professional formatting so you can focus on your business.
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Join thousands of UK entrepreneurs using our free tools to start, grow, and
manage their businesses.
Invoice Checklist: What to Include
Missing information on your invoices can delay payments and cause issues with HMRC. Use this checklist to ensure compliance.
- Your business name and contact details
- Customer name and address
- Unique, sequential invoice number
- Invoice date and due date
- Description of goods or services provided
- Quantity and unit price for each item
- Total amount due (ex-VAT and inc-VAT)
- VAT registration number (if applicable)
- VAT rate and amount per item
- Company registration number (Ltd companies)
- Payment terms and accepted methods
- Bank details for BACS payment
- Required
- Required
- Required
- Required
- Required
- Required
- Required
- Required
- If applicable
- If applicable
- If applicable
- Required
- Required
Understanding VAT on Invoices
VAT is one of the most confusing aspects of UK invoicing. Here’s what you need to know.
Standard Rate (20%)
Applies to most goods and services in the UK. This is the default rate unless your product qualifies for a reduced rate or exemption.
Reduced Rate (5%)
Applies to specific items including children’s car seats, domestic fuel and power, and certain energy-saving installations.
Zero Rate (0%)
Applies to most food, children’s clothing, books, newspapers, and public transport. You still record these on your VAT return.
Payment Terms Guide
Choosing the right payment terms affects your cash flow. Here are the most common options for UK businesses.
| Term | Timeline | Best For | Cash Flow Risk |
|---|---|---|---|
| Payment on Reciept | 0 days | One-off services, freelancers | Low |
| Net 14 | 14 days | Small business, regular clients | Low-Medium |
| Net 30 | 30 days | B2B standard, established relationships | Medium |
| Net 60 | 60 days | Large corporations, government contracts | High |
- Late payments? Under the Late Payment of Commercial Debts Act 1998, you can charge statutory interest of 8% plus the Bank of England base rate on overdue invoices, plus a fixed compensation fee of £40–£100 depending on the debt amount.
Frequently Asked Questions
A UK invoice must include: your business name and address, the customer's name and address, a unique sequential invoice number, the invoice date, a clear description of goods or services, the amount charged, VAT amount and rate (if VAT-registered), and your payment terms. Limited companies must also show their registered company number and registered office address.
You must charge VAT if your business is VAT-registered (mandatory when taxable turnover exceeds £90,000 in 2024/25). If not VAT-registered, do not include VAT but consider adding a note stating "Not VAT registered" to avoid confusion.
HMRC requires you to keep invoices and business records for at least 6 years (5 years after the 31 January submission deadline for the relevant tax year). VAT-registered businesses must keep VAT records for at least 6 years as well.
Common UK payment terms are Net 30 (30 days, standard), Net 14 (common for small businesses), or payment on receipt. Under the Late Payment of Commercial Debts Act, you can charge interest on overdue invoices at 8% plus the Bank of England base rate.
Ready to Launch Your Startup?
Join thousands of UK entrepreneurs using our free tools to start, grow, and manage their businesses.