Getting your invoices right isn’t just about looking professional — certain details are legally required. Miss them, and you could face problems with HMRC or find it harder to chase late payments. Here’s exactly what every UK invoice needs.
The Essentials (All Businesses)
Every invoice you send must include:
- The word “Invoice” — sounds obvious, but it distinguishes your invoice from quotes or receipts
- A unique invoice number — sequential numbers work best (INV-001, INV-002, etc.)
- Your business name and address — or your name if you’re a sole trader
- Your customer’s name and address — the person or company you’re billing
- A clear description of what you’re charging for — goods sold or services provided
- The date of the invoice — when you’re issuing it
- The date goods or services were provided — if different from the invoice date
- The amount being charged — broken down if there are multiple items
- The total amount owed — including any VAT if applicable
- Payment terms — when payment is due and how to pay
If You’re VAT Registered
VAT-registered businesses have additional requirements. Your invoices must also show:
- Your VAT registration number
- The VAT rate charged on each item — usually 20%, but could be 5% or 0%
- The total VAT amount
- The total excluding VAT and the total including VAT
For invoices under £250 (like till receipts), you can use a simplified VAT invoice with fewer details. For invoices over £250, you need the full information listed above.
Sole Traders vs Limited Companies
If you’re a sole trader, you can invoice under your own name or a trading name. If you use a trading name, you must also include your own name somewhere on the invoice.
Limited companies must show their registered company name exactly as it appears on the Companies House register, plus the company registration number and registered office address.
What About Payment Details?
While not legally required, always include:
- Your bank account details (sort code and account number)
- Accepted payment methods
- Your contact details for queries
This speeds up payment and reduces back-and-forth emails.
A Quick Checklist
Before sending any invoice, check you’ve included:
☐ The word “Invoice” ☐ Unique invoice number ☐ Your business name and address ☐ Customer’s name and address ☐ Description of goods/services ☐ Invoice date and supply date ☐ Itemised amounts and total ☐ Payment terms and bank details ☐ VAT details (if VAT registered)
What Happens If You Get It Wrong?
An incomplete invoice won’t land you with an instant fine, but it can cause problems. Your customer might not be able to reclaim VAT on their purchase. You might struggle to enforce payment through the courts if there’s a dispute. And HMRC could question your records during an inspection.
Most accounting software automatically includes the required fields, so you’re unlikely to miss anything once you’re set up. If you’re invoicing manually, keep this checklist handy until it becomes second nature.
Tax rules can change. For the latest requirements, check GOV.UK or speak to an accountant.