Invoicing in the United Kingdom
There is no single legal format for an invoice in the UK, but every invoice should clearly show who is charging whom, for what, and how much. If you are VAT-registered, the invoice must also meet HMRC’s rules for a VAT invoice. Businesses must register for VAT when their taxable turnover goes over £90,000 in 12 months, and can register voluntarily below that.
BillDoodle sets up a UK invoice for you: amounts in pounds sterling (GBP), dates as DD/MM/YYYY, an A4 PDF, and presets for 20% standard-rate VAT, 5% reduced-rate VAT, zero-rated supplies and businesses that aren’t VAT-registered.
What to put on a UK VAT invoice
- A unique invoice number that follows on from the last one
- Your business name and address, and your VAT registration number
- The invoice date and the time of supply (tax point), if different
- Your customer’s name or trading name and address
- A description of the goods or services, with the quantity and the unit price excluding VAT
- The VAT rate for each item, the total excluding VAT, the total VAT and the total payable
For sales of £250 or less including VAT, a simplified VAT invoice is allowed. If you are not VAT-registered, issue a normal invoice and don’t show VAT. Limited companies must show their registered company name on invoices, and many also add their company number and registered office.
Getting paid in the UK
Put your bank details – account name, sort code and account number – on the invoice, along with clear payment terms such as 14 or 30 days. For business customers, the Late Payment of Commercial Debts (Interest) Act lets you claim statutory interest on overdue invoices and a fixed compensation sum. Some construction services use the domestic reverse charge, where the customer accounts for the VAT; if that applies, say so on the invoice and don’t charge VAT.
Frequently asked questions
Do I need to be VAT-registered to send an invoice?
No. Anyone can send an invoice. Only VAT-registered businesses may charge VAT and must issue VAT invoices. Choose “Not VAT-registered” if you aren’t registered.
What is the VAT rate in the UK?
The standard rate is 20%. A reduced rate of 5% applies to some goods and services, such as home energy, and some are zero-rated, such as most food and children’s clothes.
Can I invoice an EU or US client from the UK?
Yes. Choose their currency from the Currency menu if you bill in euros or dollars. Many services to overseas business customers are outside the scope of UK VAT, so check HMRC’s place-of-supply rules before adding VAT.
Is it really free?
Yes. You can create and download as many documents as you like without paying and without creating an account.
Where is my data stored?
Everything you type stays in your own browser. Drafts and your history are saved locally on this device, so nothing is uploaded to our servers.