What every invoice must include
GOV.UK lists what every invoice needs, whatever kind of business you are:
- a unique identification number (see how to number your invoices)
- your business name, address and contact information
- your customer’s name and address
- a clear description of what you’re charging for
- the date you provided the goods or services (the supply date)
- the date of the invoice
- the amounts being charged
- the VAT amount, if VAT applies
- the total amount owed
Sole traders
If you’re a sole trader, the invoice must show your own name and any business name you use. If you trade under a business name, you must also give an address where legal documents can be delivered to you (GOV.UK).
For example, Jane Smith trading as Northfield Design shows both “Jane Smith” and “Northfield Design”, and an address for documents. Our invoice generator has a separate box for your own name for this reason.
Limited companies
A limited company must show its full name as it appears on its certificate of incorporation (GOV.UK). If you choose to name any directors on your invoices, you must name all of them.
Company law also says your business letters, order forms and website must show your registered number, your registered office address, where the company is registered (England and Wales, Scotland or Northern Ireland) and that it’s a limited company. Many companies put these on their invoices too, usually in the footer, so all their paperwork matches.
VAT-registered businesses
If you and your customer are both VAT registered, you must use a VAT invoice when you charge VAT at the standard or reduced rate, and you normally have 30 days from the supply to issue it (Notice 700/21, section 3.1). A full VAT invoice must show:
- a sequential number, from one or more series, that identifies the invoice
- the time of supply (the tax point)
- the date of issue, if it’s different from the time of supply
- your name, address and VAT registration number
- your customer’s name and address
- a description that identifies what you supplied
- for each item: the quantity, the rate of VAT and the amount before VAT
- the unit price
- the total before VAT
- the rate of any cash discount you offer
- the total VAT, in pounds sterling, even if the rest of the invoice is in another currency
That list comes from VAT Notice 700/21, section 4.1. Some sales need a different kind of VAT invoice, such as a simplified invoice for £250 or less, or a reverse charge invoice for building work. Our guide to full, simplified and reverse charge VAT invoices explains when to use each.
If you’re not VAT registered, don’t show VAT or a VAT number on your invoices, and don’t charge VAT.
Worth adding
These aren’t required, but they help you get paid on time:
- A due date or payment terms, such as 30 days. Without one, it’s harder to chase late payment.
- How to pay you: the account name, sort code and account number, and an IBAN for customers abroad.
- A payment reference, usually the invoice number, so you can match payments to invoices.
- The customer’s purchase order number, if they gave you one. Many larger businesses won’t pay without it.